Having just completed a £2.4 billion merger, reports have surfaces that Ladbrokes Coral Plc is studying a potential £2 billion takeover bid for Tabcorp Australia.
According to SBC News the company has appointed advisors to study a potential bid. Ladbrokes Coral, however, has not confirmed interest in acquiring Tabcorp assets. The deal would be for about A$2.5 billion, local reports said.
Ladbrokes is said to have been interested in Tabcorp for several years and reportedly made a bid for the company in 2013. Tabcorp runs a network of high-street bookmakers as well as electronic games in pubs and clubs and several pay TV channels.
Ladbrokes may be considering a move since Tabcorp is currently in a planned merger with Australian rival Tatts Group valued at £6.6 billion. The two companies began talks in October, hoping to become the leading gambling company in Australia.
Tabcorp recently announced it had purchased 10 percent of Tatts Group stock to facilitate the merger for about A$638 million. Australian media also reported that the two companies may be forced to sell of some assets by Australian regulators for the merger to be approved.
A takeover from Ladbrokes Coral bid would likely temporarily halt that merger and various media reports suggested that Ladbrokes is not interested in acquiring Tatts Group and may be seeking to stop the proposed merger by moving on a bid for Tabcorp.
