As reported by: Reuters
Malaysia's Genting has agreed to buy Stanley Leisure in a deal which values the UK casino firm at 639 million pounds ($1.2 billion) and shores up Genting's position in a newly liberalised market.

Malaysian casino and leisure firm Genting Bhd said on Monday it had agreed to pay 860 pence a share in cash for Stanley and that it had also increased its stake in Britain's biggest casino operator to about 25 percent.

Stanley Leisure shares, however, climbed as high as 875p amid newspaper speculation that U.S. groups MGM Mirage or Harrah's might make a counter offer.

Britain is deregulating its gambling industry, turning its existing small players into attractive takeover targets for global casino operators, such as Harrah's Entertainment Inc.

Las Vegas-based Harrah's, the world's biggest casino group, pounced this month with an agreed bid for London Clubs, in which Genting owns a 30-percent stake, leaving the market in little doubt that the Malaysian firm would swoop on Stanley.

London Clubs shares are trading about 8 percent above Harrah's offer.

"The market is clearly expecting some more activity in the sector," said Altium Securities analyst Wayne Brown in London.
Article By: Reuters