Gaming firm Stanley Leisure has said it is considering bidding to buy London Clubs, one of the UK's most upmarket casino chains.

In a statement to the London stock market, Stanley Leisure said it has been watching the circumstances of London Clubs closely

It said it views London Clubs as "one of its principal competitors".

However, Stanley Leisure made clear that it wants the support of London Clubs' board for any offer it might make.

No hostile takeover

It said it has held talks with the rival firm's chief executive, Alan Goodenough, and venture capital firm Hg Capital over the feasibility of a bid.

It said it would be interested in making a recommended offer for London Clubs if agreement can be reached.

But the talks are still at any early stage. Stanley Leisure said it has not yet initiated the detailed checking of London Clubs' accounts which would be needed to put a price tag on the company.

Stanley Leisure said it was announcing the talks because of press reports of a potential tie-up.

Stanley Leisure is currently building the UK's largest casino in Birmingham.

The Stanley Star City Casino will have gaming 40 tables and more than 200 staff. Along with Stanley's other casinos in the city, the firms intend it will put the Midlands "firmly on the gaming map".