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 Ladbrokes and 888 Holdings have ended merger discussions. The two companies released nearly identical statements on Friday saying that both parties have agreed to discontinue talks. Ladbrokes announced that it was preliminary discussions to purchase 888 Holdings back in December. Rumor has it Ladbrokes was offering something in the range of £240 million for the company but after months and months of discussions nothing seemed to happen. Neither company went into details about why merger talks ended as they did but many suspect that 888 Chief Executive Officer Gigi Levy's resignation last week might have something to do with it.
Ladbrokes chief executive Richard Glynn commented on the matter saying, "It was very amicable between us but at the end of the day I simply decided it was not in the interests of shareholders. Our drive to make Ladbrokes favorite again has good momentum."
Although merger discussions have fallen through both companies should be okay. Despite a tough economic climate, 888 Holdings saw a 9% increase in revenue during the first quarter of this year and Ladbrokes saw a 2.3% increase in revenue. Glynn expressed optimism about the performance of the company for the rest of 2011 saying, "at this early stage in the year, the business is performing in line with the Board's expectations."
As always, stay tuned to Casinofan for more news and updates.
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