Gala Coral: A merger with Gala Coral could create a combined business with significant scale and has the potential to generate substantial cost synergies, creating value for both companies’ shareholders, Mullen said in a statement, according to Euro News. Mullen said that the Ladbrokes board has yet to decide if the deal was strategically attractive and can be presented to shareholders on appropriate terms. The talks are the first major move by Ladbrokes Chief Executive Jim Mullen who was promoted to the head of Britain second biggest bookmaker in March. If the discussions advance, Ladbrokes may undertake an equity placing to strengthen the balance sheet of the combined company, the statement said. Gambling companies are facing tighter regulations and higher taxes in Britain, fuelling deal-making in the sector as players seek to cushion the impact by creating larger businesses. The two businesses would have around 4,000 betting shops and also seek to close the gap on market leader William Hill
which has pulled away from Ladbrokes thanks to stronger growth in its online business. (news.financializer.com). As reported in the news. Tagged under Gala Coral, topics.