Hilton spurns approaches for Ladbrokes

Hotels and gaming company Hilton Group said yesterday it wanted to keep its Ladbrokes betting shop chain after spurning several takeover approaches.

The company, which on December 22 said it had received expressions of interest in the Ladbrokes gambling business, said it received more since then.

"These approaches included a number of pre-conditions and failed to recognise the long-term strategic value of Ladbrokes," the firm, which will be left with Ladbrokes once its hotels division is sold to US namesake Hilton Hotels Corp., said in a statement. A Hilton spokesman declined to comment on a report in Thursday's Financial Times which said it had rejected a £3.7 billion bid from private equity group CVC Capital Partners for the betting shop chain. Industry sources told Reuters last year that Hilton had received expressions of interest not only from CVC but also from private equity groups BC Partners and Blackstone which could value it between £3 and £4 billion pounds.

"The board reiterates its confidence in the business and prospects of Ladbrokes and is looking forward to Ladbrokes trading as an independent betting and gaming company," Hilton said.

US-based Hilton Hotels Corp. is paying the UK group £3.3 billion for its hotel operations. The deal is expected to close within the next few months. Hilton Group shares were up 3.2 per cent at 378-1/4 pence by 8:12 a.m., valuing the business around 6 billion pounds.