Ladbrokes Coral turn down £3.6bn GVC takeover

GVC, the Isle of Man-based gambling giant, have failed in another bid to gain control of Ladbrokes Coral, the Financial Times reports.

Approaching the UK bookmaker that currently hold over 3,500 betting shops, GVC offered £3.6bn in an attempt to create possibly the world’s largest gambling company.

This is the second time an offer has been made by GVC, the first being last year when Ladbrokes was completing its £2.2bn merger with Coral.

Sources close to the discussions say that they broke down and are no longer taking place due to issues over the correct value of both companies and uncertainties over a crackdown into the sector from UK authorities expecting to take place this autumn.

Analysts have suspected that British gambling companies will be preparing for potential unifications following a proposed reduction on FOBT maximum stakes in the British parliament’s triennial review.

Deals are currently being stalled due to ambiguity over the situation as various accounts state the proposed legislation changes have been scrapped while other reports claim it is “fake news.”

GVC valued Ladbrokes Coral at 140p or £2.7bn but also stated that a potential increase of 50p was possible depending on the conclusions of the government’s review, taking the total price up to £3.7bn.