Ladbrokes under starters orders over talks with Sportingbet

BOOKMAKER Ladbrokes yesterday confirmed it had made a takeover approach to smaller rival Sportingbet, sending shares in the target up 16 per cent.

It is the second time in recent months that Ladbrokes has made an acquisitive foray, having pulled out of talks over a possible takeover of online gaming firm 888 over the issue of price.

The group said that its latest talks with Sportingbet were preliminary, with no certainty an offer would be made.

Richard Glynn, chief executive of Ladbrokes, added: "The board has set out previously a clear organic strategy for Ladbrokes.

"We also stated that we would explore appropriate opportunities that may help us accelerate that process and bring benefits to our shareholders. These talks should be seen in that context."

In April, Ladbrokes terminated talks with 888 after four months of wrangling with the firm's founding shareholders.

Shares in Sportingbet leapt 15.9 per cent or 6.75p to 49.25p on the disclosure of the approach by Ladbrokes, whose stock edged down 0.3p at 146.2p.

One analyst said: "The advantage of having Sportingbet for Ladbrokes is that it has an established online platform, and they tend to make better margins than their peers."