Traders expect Ladbrokes bid for 888

The online poker company and casino, 888 Holdings, on hopes that it might be a takeover objective for Ladbrokes, closed at an all time high yesterday.  This is to take place only following the bookmaker’s completion of the £3.3bn sale of its Hilton hotels.
Ladbrokes chief executive Chris Bell, is resolute in making the most of the company's autonomous status by growing overseas and online, and traders consider that 888 could be an attractive target for the cash-generating bookie.
Casino-On-Net is operated by 888, and is one of the most popular online casino sites. They also operate Pacific Poker, which is the fourth-largest internet poker site. Approximately half of its income comes from the United States and analysts point out that John Anderson, its chief executive officer, was formally a Ladbrokes employee.
In addition to this, 888 seems to be one of the least expensive stocks in the sector, according to stockbroker Killik & Co., trading on a potential price-earnings ratio of 14.  888 shares, was floated at 175p in September. It recently closed 2.25p higher at 210.25p.  This brings the value of this FTSE 250 company to just over £700m.
It has been a very good day for online betting and gaming stocks. In heavy trading on rumors that it too might become a takeover option for Ladbrokes or another bookmaker, Spread betting group IG rose 6.25p to 180p.  Those who watch this sector have also noted that stocks such as IG, 888 and PartyGaming, which is up 1.5p to 138p, are still being under-purchased by UK institutions.

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