Isle of Man online gambling company GVC Holdings has failed in its attempt to takeover the UK bookmaker Ladbrokes Coral Plc with an offer worth a potential £3.6 billion. The two companies ended talks “in recent weeks” for a number of reasons such as disagreement over the value of Ladbrokes Coral.
According to the Financial Times, GVC’s proposal rated Ladbrokes Coral at around 140 pence per share, which is about £2.7 billion.
GVC was also willing to increase the value of the agreement by approximately 50 pence per share if the results of a UK government’s current UK gaming review were favorable to industry, sources said. This could push the final price to £3.6 billion.
This is the second time that the Isle of Man-based approaches Ladbrokes. At the time, Ladbrokes was closing the £2.2 billion combination with Coral.
On Tuesday, shares in Ladbrokes Coral were closed down 0.2 percent at 119.8 pence. Insiders believe that GVC will come again with another higher bid.
Both companies declined to comment on the bid.