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Analyst Suggests Ladbrokes/888 Deal Is Good Move

Daniel Stewart & Co Says Ladbrokes Move To Buy 888 “Makes Sense” And If Completed Will Make Ladbrokes Shares “Speculative Buy”


Michael Campbell, equity analyst at Daniel Stewart & Co has issued a note suggesting Ladbrokes discussion to buy “make sense”.

It todays Morning Meeting Note from the company, Campbell said, “Firstly it gives LAD [brokes] a lot more scale in the online space, 2nd in Poker, 2nd in Casino, 2nd in Bingo but only 4th in Sports (behind, Party/Bwin, SBT and UNIB). Secondly the acquisition gives LAD an option on the US market should an Internet Poker bill succeed at Federal level (even though we think there is a slim chance of this occurring given the structure of new Congress).

“Finally, LAD currently lags behind Paddy Power and William Hill in the online space this deal would enable LAD to leapfrog both competitors in the online space.”

He add that shoud a deal be clinched, Daniel Stewart & Co. would rate Ladbrokes shares as a “speculative buy contingent upon the synergies achievable and the option on the US market due to 888 relationship with Caesars Entertainment.”