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Hilton rejects £3.7b offer for Ladbrokes

02 February 2006

Hilton Group has rejected a £3.7b offer for its gaming and betting arm Ladbrokes.

The bid by buy-out group CVC Capital now appears not to have been the only one made for the division.

Other offers are believed to have been made by private equity firms Kohlberg Kravis Roberts, Blackstone and BC Partners.

In a statement, Hilton confirmed that further approaches had been made for Ladbrokes this year, but added: "These approaches included a number of pre-conditions and failed to recognise the long-term strategic value of Ladbrokes."

Hilton's chairman Sir Ian Robinson has reiterated his reluctance to sell the business, although if the offers increase in value, he may be forced to reconsider.

Ladbrokes is currently valued at around £3.1b including debt.

Hilton added: "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 is currently finalising the sale of its hotel business to US counterpart Hilton Hotels Corporation for around £3.3b.

By Emily Manson

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