GVC and Ladbrokes Coral confirm takeover talks

The timing was a surprise but the news wasn't when it was revealed last week that GVC Holdings was in detailed talks about a takeover worth up to £3.9 billion with Ladbrokes Coral.

The two companies have been linked for some time but it had been thought news of any deal would emerge after the government had provided clarity over its plans for FOBT stakes next year.

Instead the final price GVC will pay depends on the government's final decision. Should the maximum stake be slashed to £2 from £100 then GVC would pay £3.1bn for Ladbrokes. The price would rise with the maximum stake up to £3.9bn should the government decide on a £50 level.