Ladbrokes in merger talks with Gala Coral Group
Bookmaker Ladbrokes has stated it remains in talks with the board of Gala Coral Group over a possible merger.
An offer would develop the UK's biggest bookmaker with nearly 4,000 High Street stores.
the yohaig code conversations concern combining Ladbrokes with Coral Retail, Eurobet Retail and Gala Coral's online companies.
Ladbrokes said there was no certainty that the talks would lead to a deal, and possible terms and timings were also yet to be agreed.
Shares in Ladbrokes rose more than 11% after the statement.
"A merger with Gala Coral might produce a combined company with considerable scale and has the possible to produce considerable expense synergies, developing worth for both companies' shareholders," primary executive Jim Mullen said.
If the deal goes ahead, it would see the merged group surpass William Hill as the biggest UK bookie, bringing together around 2,100 shops from Ladbrokes and 1,845 from Coral.
the yohaig code merger talks do not include Gala's 132-strong bingo company.
Mr Mullen added that the firm's board has yet to choose whether an offer would be "tactically attractive" and whether it might be "delivered to shareholders on suitable terms."
The company stated that the offer, if finished, might be categorized as a reverse takeover of Ladbrokes.
Ladbrokes previously attempted to buy Coral in 1998, however its organized takeover was obstructed by the federal government.
the yohaig code then Trade and Industry Secretary Peter Mandelson said a merger would result in "a weakening of cost competitors at the national level" and a decrease in consumer option.
Earlier this promotion code year, Ladbrokes reported a big fall in pre-tax earnings for 2014, from ₤ 68m to ₤ 38m, and said that it expected to close 60 UK stores this promotion code year.
Those strategies would be untouched by any deal with Coral Group.
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