City speculates over ladbroke
Recent movements in Ladbroke's share price - which has risen from a low of 147p in mid December to 172p - have provoked renewed speculation of a possible takeover bid by a third party.
Industry sources this week suggested that potential predators in the Far East and North America were eyeing up Ladbroke with a view to selling off non-core assets and concentrating on hotels and gaming.
It seems the aim of such a move would be to reunite Hilton International, owner of the Hilton name outside the USA, with USA-based Hilton Hotels Corporation, which recently became available.
However, some analysts are convinced Ladbroke itself is best placed to join Hilton back together, either by buying or merging with its US counterpart, or by persuading a backer to do the deal and appoint Ladbroke as operator.
Indeed, Caterer understands that Tommaso Zanzotto, Hilton International's chairman and chief executive, is currently investigating ways of integrating the two companies in the event of such a deal.
If Ladbroke were to attempt an acquisition, however, the problem would be how to finance it. In a recent paper, leisure analysts at Kleinwort Benson pointed out that even if the property division were to be sold off quickly, a rights issue would be required.
They nevertheless argued that all the various permutations "must all conclude with Ladbroke owning the Hilton name worldwide". Otherwise a "rare opportunity to create a unique and unassailable position in the global hospitality business" would be lost.
Such a move would also avoid the need for further legal action by Ladbroke, which claims the US group is passing off its international division, Conrad International Hotels, as part of Hilton in an area where it does not have rights to the name.
Conrad International currently has eight hotels around the world, including the five-star Conrad London in Chelsea Harbour.
Assuming both companies do eventually come together they would create a worldwide business with 459 hotels and 162,755 bedrooms.
