Stanley Leisure plc yesterday confirmed that it has received a proposal concerning a possible offer which the Board is currently evaluating. No other comment was made other than to say that a further announcement would be made in due course. The company is the biggest UK casino operator with 45 properties around the country, including 4 in London. Merger talks between Stanley and London Clubs International (LCI) were recently abandoned after Harrah’s Entertainment made a bid for LCI.

It is understood to be the gaming group of the Malaysian firm Genting that has made a bid approach to Stanley. Genting is the biggest shareholder in LCI with 29.7% and holds nearly 20% of Stanley Leisure. There remains speculation that the company could make a rival bid for LCI. Stanley and LCI, as well as another UK operator – Rank, have all been tipped for takeovers. Ladbrokes, Australian Tabcorp and Greek Opap have all been mentioned as possible bidders. Rank was also rumoured to be bidding for Stanley.

The Stanley properties require investment and the company is expected to be valued at around £700 million (US$1.3 billion) including debt. Shares in LCI have already risen above the Harrah’s offer, the market betting on a new bidder entering the fray. Stanley shares have also risen since the Harrah’s bid became public. It is considered possible that Genting and Harrah’s could make bids for both LCI and Stanley and merge the two companies. (E-09.05.06)

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