Earlier Conjecture That Suitors Were Involved In Buying Gambling Group Confirmed By Hilton Group

The British financial media reported late in the week that Hilton Group Place, the British hotels and gaming company had confirmed what had been speculated earlier with regard to its having received indications of interest in the purchase of its Ladbrokes gambling business.  This had the immediate effect of raising its shares to new market highs.

Hilton group reports that these indications of interest appeared after U.S. group Hilton Hotels Corp. made known last October that it was in discussions to buy the hotels that were owned by its British namesake.

The company has announced however, that for the benefit of its shareholders Hilton Group continues to be focused on concluding its discussions with Hilton Hotels Corp. as regards the sale of the Hilton International hotels division.

It was earlier this week reported by the Financial Times that Hilton UK is expecting to receive offers from several companies as regards its Ladbrokes betting-shop chain.  The companies expected to make such offers include Blackstone Group Labor Party, BC Partners Ltd., and CVC Capital Partners Ltd. Alex Pagett, the Hilton spokesperson, confirmed this report.  She is reported as saying that the company had become obliged to make a statement in response to speculations in the press.

Following the recent relaxation of the 37-year-old laws that have governed the industry, U.K. gambling companies have attracted the interest of investors. The U.K.'s biggest bingo-hall management, Gala Group Holdings Plc, agreed in October to buy for GBP 2.18 billion ($3.8 billion), Coral Eurobet from Charterhouse Capital Partners and company managers.  The world's largest bookmaker, Ladbrokes, could probably get GBP 3 billion to GBP 4 billion.

There was a 2.8 percent rise in the chare value of Hilton Group shares in London.  This makes the company worth GBP 5.88 billion. It also reflects a rise of 29 percent for the year.

Hilton Group's fastest-growing and most major business, Ladbrokes, helped sustain the company's profit when following the September 2001 terrorist attacks in the U.S., the lodging division lost bookings. There was a similar decline following July's bombings in London, when revenue per room at Hilton's hotels in the U.K. capital again fell.

With the proposed sale of the Hilton International hotels division the company would primarily become a gambling company with the focus being on Ladbrokes.  Landbgrokes now accounts for about 60 percent of annual profit.

Ladbrokes is adding additional shops and renovating existing ones in order to capitalize on the attractiveness of gambling.

Based on the sums won by gaming companies, the value of the British market, is slated to increase by 33 percent or to GBP 11 billion by 2010.  This according to Global Betting and Gaming Consultants in West Bromwich, England, is expected to occur as more casinos are opened.

The historical roots of the Hilton Group may be traced originally to the village of Ladbroke in central England.  It was here that a local racehorse trainer established a partnership in 1886 in order to take bets on races.

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