Casinos.co.uk: Casino News Archive
Thursday 29th November 2007
Rank rejects Harrah's offer
UK casino operator Rank has rejected a business proposal Harrah's Entertainment, according to the Daily Telegraph.
The World Series of Poker (WSOP) owners offered to buy a 28 per cent stake in Rank in return for Harrah's casino holdings in the Britain.
However, Rank refused the offer from the US casino giant, because it would mean the loss of a significant US casino ownership stake.
Analysts have been surprised at both the offer and the rejection, after Rank has seen its shares slide to a seven-year low.
Shares in the firm, which owns Grosvenor Casinos and Mecca Bingo, have taken a tumble after it announced profit warnings last month.
Revenues have taken a dive over the year since the removal of gaming machines and the new smoking ban as well as increased taxation adding to expenses.
Genting and Ladbrokes have already expressed interest in buying Rank out while Harrah's purchased London Clubs International last year for £300 million.
Source:Direct News
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