Bookies to stake £520m in bid war

Bookie, William Hill is expected to launch a £520m bid this week for Stanley Leisure's 620 betting shops. But Coral Eurobet, the third biggest bookmaker behind Ladbrokes and William Hill, is understood to be planning a rival bid in the next couple of weeks, according to company insiders.

William Hill, headed by chief executive David Harding, announced last week that it was in exclusive talks with Stanley Leisure. But that period of exclusivity expires at the end of this week.

Coral is not the only company interested in the shops, which are based mainly in the North East, Scotland and Ireland. Northern bookmaker Fred Done told Financial Mail on Sunday he would be in the running if William Hill failed to cement a deal. Rank Group is also in the frame.

But if William Hill agrees a deal with Stanley Leisure, it faces a battle to win the backing of shareholders, who were expecting a £453m cash return from the company.

One shareholder said: 'The deal looks pricey and there is a lot of risk. We thought that Harding had more financial discipline than this, but it looks like he's keener on building an empire than creating shareholder value.'
2005-04-12