On the eve of the 166th Grand National at Aintree in Liverpool, the most prestigious steeplechase in the horse-racing calendar, Ladbrokes pulled up lame.
of Britain’s second biggest bookie fell 15.5p to 207.5p after Deutsche downgraded to hold from buy, but that was not the only reason some nervy investors decided to dismount.
Rumours from the paddock of late have suggested that chief executive Richard Glynn could be interested in bidding for Betfair (22.5p easier at 690p), the world’s largest internet betting exchange. If so, followers fear he could overpay.
Ladbrokes was the first bookie to offer interactive betting over the internet and has had a website since the football World Cup in 1998. Recently it has seen its biggest rival William Hill, 8.6p lower at 373.4p, grab all the headlines with the joint £485m acquisition, with sportsbook provider GVC, of Sportingbet. It has bolted on the online betting company’s thriving Australian business to its own international offering.
It also bought out Playtech’s (25p off at 585p) 29 per cent stake in William Hill online for £424m. The move was roundly applauded by several City institutions who took up over 98 per cent of the rights issue called to help finance the deal.
Ladbrokes appears to be cantering along some furlongs behind William Hill, which now has a market capitalisation of £2.6bn. Ladbrokes is worth around £1.87bn, but acquiring Betfair would take it nearer £2bn.
Betfair was buoyed recently after the Italian finance minister signed a decree that will allow exchange betting in Italy, the fourth largest gaming market in the world and the largest in Europe.
An estimated £300m will be wagered on today’s Grand National with many punters having their money on Ruby Walsh’s mount and the current favourite, On His Own.
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Compass, the catering giant which will supply punters with all their grub and goodies at the racecourse, cheapened 21.5p to 814.5p.
The London market, already in the doldrums on end of tax-year considerations and ongoing worries about North Korea, yesterday failed miserably to negotiate its Becher’s Brook, the US non-farm payroll data.
News that the world’s largest economy added just 88,000 jobs last month, some 50 per cent lower than economists’ pessimistic expectations, sparked further selling. The unemployment rate, however, dipped to 7.6 per cent, the lowest since December 2008. The Footsie dropped 94.34 points more to 6,249.78, making a three-day decline of 240 points. The FTSE 250 shed 275.34 points to 13,480.21. Wall Street opened 137 points down with one US strategist describing the jobs data as ‘shockingly weak’.
Travel stocks had their wings clipped amid growing fears that a bird flu outbreak in China, which has so far claimed six lives, would stifle air travel demand.
IAG, the British Airways and Iberia airlines group, nosedived 17.4p to 234.9p. It had reported on Wednesday that the number of premium passengers flying with the group fell 2 per cent last month.
TUI Travel lost 14.6p to 298.6p and Intercontinental Hotel 72p to 1913p.
Defence group BAE Systems improved 3.4p to 386.3p after broker Espirito Santo lifted its fair value price to 450p from 425p.
BAE began the year with negotiations still ongoing for the variance-on-price contract which will enable the next phase of the Saudi fighter jet programme to proceed. The broker understands that Typhoon deliveries will resume in May regardless of whether the VOP is signed, with two aircraft due in the first half of 2013 and eight in the second.
Tony O’Reilly, junior’s Providence Resources advanced to 645p on a bullish resource update on the Barryroe oil field in the North Celtic Sea Basin, offshore Ireland.
Results of the audit carried out by respected firm Netherland Sewell & Associates increased the estimate of recoverable oil to 266m barrels of oil from 234m.
This increases Barryroe’s farm-out potential and broker Liberum Capital remains confident with its £22 price target.
Profit-taking left the close 2.5p off at 620p.
In the dog-eat-dog world of small and mid-cap stockbroking, Cenkos Securities is thriving. Its shares jumped 7p to 87.5p on hearing that full-year pre-tax profits leapt 37 per cent to £7m on the back of revenues of £43.2m.
The dividend is lifted 50pc. It helped client companies raise £711m last year and was active in the IPO market, helping seven companies including Rangers Football Club and Bridge Energy join the market.
Watch out for the rally at Cupid, 2.5p dearer at 82.5p. The troubled online dating agency has an interesting new admirer.
Toscafund has snapped up a 5 per cent-plus shareholding and boss Martin Hughes is apparently very much looking forward to working with its management to achieve shareholder value.
A savage bear raid last month saw the stock sold down to 47p after a Russian report suggested the company was engaged in underhand practice.