Ladbrokes has responded to shareholder Dermot Desmond’s opposition the company’s potential merger with Coral Group. In response, Ladbrokes reaffirmed its recommendation that shareholders support the deal.
The Board presented “compelling strategic rationale and benefits” of a merger with Coral, which included:
· The potential to deliver faster online growth
· The creation of the UK's largest LBO estate
· The creation of an extensive international portfolio of regulated businesses
· The delivery of significant cost synergies underpinning shareholder returns
· ability to operate across an enhanced and integrated technology platform
“The Board remains confident that shareholders will see the attraction of the proposed merger and continues to work towards a successful conclusion to the proposed transaction,” said a Ladbrokes statement.