Stanley Leisure receives bid approach from Genting – source (UK)

(source: AFX September 5, 2006)

Stanley Leisure receives bid approach from Genting – source
LONDON (AFX) – UK casino operator Stanley Leisure PLC has received a takeover approach from Malaysian conglomerate Genting International (G13.SI – news) , which is looking to gain a foothold in Britain’s fast de-regulating gaming industry, according to a source close to the situation.
An insider at the UK group told AFX News that Genting, which holds a stake of around 20 pct in Stanley Leisure (LSE: SLY.L – news) , is anxious to build a presence in the UK ahead of a major relaxation in the laws governing casinos.
Genting’s plans to muscle in on the market initially centred on the June proposal to merge Stanley Leisure with rival London Clubs International, in which it had also acquired a significant holding.
But its ambitions were thwarted when LCI last week accepted a 279.3 mln stg takeover offer from US giant Harrahs Entertainment Inc (NYSE: HET – news) , one of the world’s biggest gaming companies.
Earlier today, Stanley Leisure shares rallied 19.2 pct to close at 811 pence, valuing the company at some 478 mln stg, on rumours that a takeover bid was in the offing.
Stanley Leisure released a statement after the close of trading, confirming that a proposal concerning a possible offer had been received, but was still being considered. A further announcement would be made in due course, it added.
Initial speculation about the potential suitor centred on UK leisure group Rank Group PLC. However, a source close to Rank Group (LSE: RNK.L – news) described the Stanley Leisure rumour as ‘complete nonsense’.

Date Posted: 04-Sep-2006