Desmond's concerns were valid, eGR readers say
Respondents to this week's poll suggest some of Lads shareholder's concerns over Coral merger were accurate
Ladbrokes shareholder Dermot Desmond’s outspoken criticism of the operator’s deal to merge with Gala Coral made some valid points and was grounded in fact, according to the majority of respondents to this week’s eGR poll.
Irish financier Desmond broke his silence over the merger last week when he launched a scathing attack stating, among other things, that the deal undervalues the long-term potential of Ladbrokes and was heavily stacked in favour of Gala Coral’s private equity owners.
Desmond, who is thought to own between 2% and 3% of Ladbrokes, published a 58-slide presentation titled ‘Say No to Coral’ in which he criticised the firm’s board and management for “abdicating turnaround responsibility” of the business.
And in response to this week’s poll more than three quarters (76%) of eGR readers said Desmond was right to speak out.
However Desmond’s campaign had little impact on Ladbrokes shareholders, with 96% voting in favour of the merger at a special meeting held earlier this week.
And 24% of eGR respondents also agreed the combination with Gala Coral was the right move for the operator.
It now appears the CMA remains the final barrier before the merger completes, with the deal likely to be finalised in H1 2016.