Spirit raises the bar for bidders 19 Oct 2005 Strong quarterly sales suggest the privateequity owned UK pub group has turned the corner after a slip earlier this year. This will significantly strengthen its hand in negotiations with prospective bidders, who now have until midNovember to put up or shut up.
Huge upside for Hilton from hotel sale 14 Oct 2005 If the UK leisure group gets anywhere near £3.6bn from selling its hotels to HHC, it suggests Hilton shares are substantially undervalued. What s more, it could signal a new willingness by US hotel groups to expand internationally, paving the way for more hotel sector bids.
Sportingbet shows online poker’s not dead 12 Oct 2005 The online gambling group says poker is booming even in the US, where rival Partygaming said the market was putting on the brakes. That shows there's still value in gaming stocks that are diversified and well run. It should now be easier to sort the wheat from the chaff.
Accor fudges nepotism row 11 Oct 2005 The French hotel group has shoehorned the nephew of a cofounder into the top executive slot. He wasn't obviously the best choice. The silver lining is that the founders have agreed to an outside chairman and AngloSaxon style board. Not perfect, but better than nothing.
Empire Online deals fresh blow to gaming investors 10 Oct 2005 The online gambling group says market growth is flattening. Meanwhile, its major partner seems to be reducing its dependence on Empire. But the shares reaction seems overdone. Empire s results suggest it s growing faster and attracting better customers than Partygaming.
Gala plans risky bet on Coral 30 Sep 2005 The UK bingo operator's private equity owners hope to extend their gaming sector winning streak with a bid for the UK betting shop chain. But with few synergies to justify paying a premium, Gala will have to take a big gamble to derail Coral's planned IPO.
Deutsche gets punchy return from Fitness First 22 Sep 2005 The fund manager kept a 10% stake when Cinven took the UK gym chain private in 2003. Now it will make a roughly 80% return. That s a tidy victory. But being a minority in an unlisted company is risky. For private equity, holdouts are more a nuisance that a threat.
888.com hacks IPO range by 20% 15 Sep 2005 The online casino group is ploughing on with its IPO despite Partygaming's profit warning last week, which slashed sector valuations. 888 will have to convince investors that Partygaming's problems were largely selfinflicted. That will be tough, but not impossible.
Intercontinental sets tough growth targets 8 Sep 2005 The UK hotel group has delivered huge returns to shareholders, including another £250m share buyback. But that process is nearly complete. Now it must prove its franchises can deliver the promised growth. That depends on its ability to sell the model to European hotel owners.
Partygaming results spook investors 6 Sep 2005 The online poker giant admits market growth is slowing, and players are spending less time and money online. True, the market could still grow almost 60% this year. But these results should give investors a muchneeded reality check.
Spirit auction becomes fractious 5 Sep 2005 The UK pub group denies shareholders and management are at war . But bidders accuse Spirit s management of frustrating the auction process. Spirit has failed to supply details of its leasehold properties. Given Spirit s complex financial structure, this is crucial information.
Sportingbet won’t win Empire without a fight 5 Sep 2005 The UK betting operator's offer for the internet gaming group values it at 14 times this year's earnings a 54% premium to its float price. But other big gaming sites are unlikely to sit by and watch Sportingbet snap Empire up. A fierce auction may be on the cards.
888.com seeks £800m IPO 1 Sep 2005 The internet poker site hopes to emulate Partygaming, whose shares are up 22% since its June IPO. The odds look good. True, most leading investment banks won t touch the sector. But investors are still drawn to online gambling s stellar growth rates.
Gala’s private equity owners strike it lucky 19 Aug 2005 Cinven and Candover have doubled the £550m they invested into the bingo operator in two and a half years. Why? Gaming is a great place to be right now. And low interest rates mean its stable cashflows can support huge leverage.
How much is Spirit worth? 6 Jul 2005 After a weak Q2, the UK managed pub group posted modest growth in Q3, although ebitda is still running below last year's pro forma figure. But that doesn t help in valuing Spirit, as it only covers half the estate. And there's the added complication of two sale and leasebacks.
Has Deutsche got one over on private equity? 29 Jun 2005 The fund manager may have doubled its money by hanging on as an unwelcome minority in Cinven s buyout of Fitness First. But though Deutsche seems to have enjoyed a free ride at Cinven s expense, it s not quite the freebie it appears.
PartyGaming gets backing for £4.7bn IPO 24 Jun 2005 Since slashing its price, the online poker operator has drawn enough support to cover its book twice over. The shares are likely to be priced at a 15% discount to rival Sportingbet. That looks enough to ensure a buoyant aftermarket.
PartyGaming cuts IPO range by 18% 15 Jun 2005 A UK listing was meant to give the online poker company credibility. Instead it has turned online gaming into a regulatory cause celebre. It s no surprise PartyGaming s lofty $10.5bn price tag has been cut. The wonder is that it hasn t been hacked further.
LBO bid for National Hockey League may not be nuts 24 May 2005 Spending $4bn to buy the lossmaking NHL may look like another example of a buyout fund with too much money and not enough opportunities. But there may be hard logic to Bain s deal. It eliminates competition for talent something Wall Street would envy.
Online gambling promises big winnings 27 Mar 2005 A raft of online gaming groups are considering UK stock market flotations, encouraged by the strong performance of Sportingbet. Yet even after a 300% rise in the last year, shares in the online gambling site still don't look expensive.