The newly combined United Kingdom betting powerhouse Ladbrokes Coral is making a play to acquire the Australian gambling operator Tabcorp Holdings.
A report was issued by The Mail on Sunday, which claimed that Ladbrokes Coral are planning a multi-billion pound bid to acquire Tabcorp. The company is said to have appointed several advisers over the last weeks. It is quite likely that the minute the United Kingdom competition watchdog approved their previous merger, they have developed a proposal to submit to Tabcorp Holdings.
This is not the first time the bookie Ladbrokes have gone on this road with Tabcorp. In January, Australian media reported that the company had made similar acquisition approaches at the end of 2013, but Tabcorp’s Chief Executive David Attenborough, who was a Ladbrokes executive, was said to have rejected these propositions without too much thought.
Tabcorp is currently in the middle of its merger with Aussie betting as well as the lottery giant Tatts Group. However, Ladbrokes Coral does not have an interest in acquiring Tatts’ operations. A reliable source told The Mail that the company’s plan is to present their bid before Tabcorp can weigh in on the proposed union with Tatts.
The report of Ladbrokes-Coral’s interest comes fresh on the heels of news that Tabcorp had already acquired a 10% stake in the lottery giants. The share acquisition was perceived to be a deterrent strike at anyone who is attempting to offer a rival bid for the lottery company.