Ladbrokes and Coral are close to agreeing the terms of a £3.5 billion merger that would create Britain’s biggest bookmaker.
Bankers from Greenhill and UBS are advising Ladbrokes on the reverse takeover and are expected to announce a share placing to raise cash to fund the deal, which if completed would create a merged company that would leapfrog William Hill in size.
The planned move is thought to be relatively complex because Coral’s parent company, Gala Coral, has a private equity structure and is saddled with £2.2 billion of debt. However, the talks are said to have progressed well since news of the discussions broke last month at a relatively early stage.
Ladbrokes made a previous, failed tilt at Gala Coral in 1998 when the