Australian ASX analysts appear to be cool on the prospects of newly formed Ladbrokes Coral Plc acquiring Tabcorp Holdings for a reported + £2 billion offer.
UK business news sources reported this weekend that Ladbrokes Coral governance had asked advisers to study a potential approach for ASX-100 Tabcorp.
However, Australian business analysts have questioned the logic of Ladbrokes Coral’s approach for Tabcorp less than a month after officially completing it’s £2.4 billion merger.
At present, it is understood that Tabcorp governance will pursue its planned AUS $11 billion merger with rival Tatts Group, creating an outright Australian market leader for gambling and sports betting.
Furthermore, Australian news sources have reported that to date, Tabcorp governance has had no communication with Ladbrokes Coral or its advisers.
Since this weekend’s news of Ladbrokes Coral’s interest in Tabcorp, industry analysts have questioned whether a £2 billion deal would deliver any substantial value for Tabcorp investors.
Prior to its merger with Coral, Ladbrokes governance had stated the importance of growing the firm’s presence within the burgeoning Australian betting market, a sector heavily targeted by its UK competitors of Paddy Power, William Hill and bet365.
Nevertheless, given Ladbrokes Coral’s position as a merged enterprise it may likely appear that a takeover of Tabcorp will be too big a bite for the FTSE newlyweds.