At the beginning of December shares in Rank rose 43% after being at their lowest point for 19 years just two weeks earlier. The rapid rise was caused by speculation that Malaysia’s Genting International would be making a takeover bid after the company had purchased a 9.4% holding in Rank. Talk of a takeover at Rank is nothing new; in November 2005 analysts were predicting that a bid would emerge in the not too distant future.

Over two years later the UK company is still awaiting an offer. In August 2006 the upmarket Clermont Club in London was sold by Rank to Singapore-based BIL Gaming, a subsidiary of BIL International that is now part of the Guoco Group. Rank has issued a regulatory statement that Guoco has acquired a sizeable number of Rank shares, a 3.17% stake, leading to further speculation of another possible takeover bid.

In an update last December the Rank Group declared that the trading outlook for the company remained challenging and that no final dividend would be paid to shareholders in 2007. This followed a profits warning in October, when Rank blamed a period of volatility on ‘a lack of visibility unprecedented in the UK gaming industry.’ Some of the company’s major projects have since been deferred.

In November 2007 Rank turned down an unusual offer from Harrah’s Entertainment. The American gaming giant proposed exchanging its major stake in London Clubs International for a 28% share of Rank. In June that year Charterhouse Capital Partners approached Rank but that move was also rebuffed. Harrah’s could still be interested and other potential suitors include Ladbrokes, William Hill and Aspers. For the present Rank remains alone with its debt and minimal freehold estate – an uncertain dowry in the present UK gaming climate. (E-01.14.08)

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