Shares in Tabcorp continue to rise on speculation that a Publishing and Broadcasting Ltd (PBL) or Macquarie Bank consortium could be considering a bid to takeover Australia’s largest gaming group, Tabcorp. Both companies have recently made forays into the international gaming market. PBL is in the process of acquiring Canadian casinos, through a joint venture with Macquarie, and a share of a hotel project in Las Vegas. Macquarie is also in a joint venture with Tattersall’s, another major Australian gambling operator, taking over the UK adult amusement company Talarius.

PBL, which has funding from the sale of some media assets, has a stated objective of expansion, particularly into international gaming markets. Tabcorp recently removed its Chief Executive following the company’s underperformance and is presently undecided on a replacement. The company operates Sydney’s Star City Casino, three casinos in Queensland, off-course betting in NSW and has the licence to operate 50% of Victoria’s gaming machines in clubs and pubs. It also owns the racing Sky television channel.

Tattersall’s has also been the subject of takeover speculation recently. Consolidation of the gaming sector’s companies is a distinct possibility and private equity sources are known to be on the prowl. So far the speculation on bids for both Tattersall’s and Tabcorp is based on rumours but the current rapid rise in the share price would suggest that many are gambling on the rumours becoming fact. (E-04.25.07)

© Copyright 2007 CasinoCompendium



>>> return to archives
>>> return to frontpage