Fight for Tatts is still on

The surprise A$8.4 billion bid for Tatts late last year by the Pacific Consortium caused some consternation in the Tabcorp and Tatts boards, which were in merger talks (see previous reports) but these concerns faded following Tatts rebuff of the consortium’s offer.

However, a new report in the Australian Financial Review this week brings the issue back into sharp focus, claiming that the Pacific Consortium is still considering its position and has been in touch with several offshore major gambling companies with a view to partnering up on a joint bid.

The idea is the consortium then walks away with the lotteries business while its partner gets Tatts’ wagering arm, the AFR speculates.

“International players such as William Hill and Paddy Power have been touted as potential partners, although it is still unclear how serious they are.” the AFR report notes, adding that it may be sensible to wait until Tatts releases its half-year results in February in order to acquire a better grasp of the businesses’ financial health.

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