The bookmaker Ladbrokes Coral is in “detailed” talks over a takeover by online rival GVC in a deal worth up to £3.9bn.
As PA reports, GVC – which owns Foxy Bingo Sportingbet and PartyCasino – has tabled a cash-and-shares approach valuing Ladbrokes at 160.9p a share, with loan notes on top worth an extra 42.8p a share.
The tie-up would create an online-led gambling giant with operations worldwide.
It would also see Ladbrokes Coral shareholders own around 46.5% of the combined group and GVC around 53.5%.
GVC chief executive Kenneth Alexander is expected to lead the combined group, although the companies said plans for the final management line-up would be worked out over the coming weeks.
A joint statement said: “The enlarged group would be an online-led globally positioned betting and gaming business that would benefit from a multi-brand, multi-channel strategy applied across some of the strongest brands in the sector.
“The enlarged group would be geographically diversified with a large portfolio of businesses across both regulated and developing markets, with the scale and resources to address the dynamics of a rapidly changing global industry.”