Ladbrokes to buy 888? Structure designed to avoid US legal action

[ipp147]

Front page of one of the Sunday papers financial sections.

[ QUOTE ]
Ladbrokes has devised a strategy to buy the assets of 888, leaving the UK-quoted company as an independent entity. Ladbrokes would therefore be distanced from any criminal liabilities faced by the online casino company

[/ QUOTE ]

[BluffTHIS!]

ipp,

Just buying the assets of a company is a standard move to avoid entangling themselves in the potential liabilities of that company, when they don't intend to keep that company in operation. This is assuming that there isn't other evidence to lead to the conclusion that Ladbrokes is going to try the dodge of claiming a wholly owned subsidiary doing business with americans isn't the same as the publicly traded parent company doing it. And in fact there is strong evidence to believe they won't, i.e. their past refusal to take american customers in order not to jeopardize a legal US based sports betting sudsidiary.

[Sniper]

Can you clarify, if the story suggested that they have a deal?... or just a strategy of how to handle the acquisition, should they arrive at a deal...

[thehotspur]

The stories over the weekend are about to handle the acquistion, but the deal for £440m is pretty much in place but Ladbrokes has been buggering around with the legal thing for ages.