Ladbrokes responds to shareholder concerns

In response to billionaire shareholder Dermot Desmond’s public disapproval of the merger between Ladbrokes and Coral Group (see previous report), Ladbrokes reiterated its recommendation that shareholders deliver a favourable vote.

The Board of Ladbrokes laid out a “compelling strategic rationale and benefits” of the proposed merger which include:

– The potential to deliver faster online growth
– The creation of the UK’s largest LBO estate
– The creation of an extensive international portfolio of regulated businesses
– The delivery of significant cost synergies underpinning shareholder returns
– ability to operate across an enhanced and integrated technology platform

“The Board remains confident that shareholders will see the attraction of the proposed merger and continues to work towards a successful conclusion to the proposed transaction,” a company statement reads.

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