As a major shareholder in both Stanley Leisure and London Clubs International (LCI), Malaysian company Genting International is seen as pushing the proposed merger between the two UK gaming companies. There have long been rumours of a possible consolidation of the two companies, which would create a gaming industry power, and share values already reflect the possibility.

Negotiations are said to be at an initial stage but it is thought that the Stanley chief executive, Bob Wiper, would remain at the head of the new operation. Analysts are of the opinion that a deal would be paper-based without a large premium on LCI. Genting, at present holding over 13% of Stanley and nearly 30% of LCI, would have a stake of around 20% in a new company. The value of a merged company would be in the region of £700 million (US$1.3 million).

Last week Stanley Leisure, the largest UK casino operator, bought Harbour House Casino in Southampton, bringing its UK casino total to 45 including four in London. LCI also has four London Casinos but only two at present in the provinces, although its Manchester casino is due to open in October. A company formed from a merger between Stanley and LCI would be in a strong position to compete with foreign operators considering entering the UK market. (E-06.26.06)

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