As news that England's major hotels and gambling company Hilton Group Plc gets ready to sell its hospitality business back to the American conglomerate Hilton Hotels Corp., other news is emerging that the company may get offers for its Ladbrokes betting-shop chain from several companies that include BC Partners Ltd., Blackstone Group LP and CVC Capital Partners Ltd. On news such as these, the City reacted by putting up Hilton Group's stock to as much as 4.3% to its highest for nearly two decades.

In a statement, Hilton Group said that the company remains ``focused'' on the sale of more than 400 properties to the American company founded by the legendary Conrad Hilton back in the 1930's, however, the terms of the transaction, which was announced in October last year are still kept under wraps. The sale of the Hilton International hotels division would make the company primarily a gambling company with the focus on Ladbrokes, which accounts for about 60 percent of annual profit.

Ladbrokes is adding more shops and revamping existing ones to capitalize on the popularity of gambling. The value of the British market, based on the amount won by gaming companies is likely to increase by over 30% in the next five years to around US$20 billion, as the gambling markets expand in the country, once operators settle down to take advantage of the new gambling legislation that was approved early in the year.

The new Gambling Act has seen a flurry of financial activity in the UK gaming sector, after the outdated and staid gambling law of 1968 was replaced. Back in October, the country's premier bingo operator Gala Group Holdings Plc paid US$3.8 billion for Coral Eurobet from Charterhouse Capital Partners and associates. According to the Financial Times, bidders could make Ladbrokes, the world's largest bookmaker fetch, including debt, between 3 and 4 billion Pounds STG, or US$5.5-7 billion. (E-12.22.05)

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