Desmond’s Ladbrokes-Coral derail fails as investors back merger

Despite Dermot Desmond’s last ditch attempt to derail its £2.2 billion merger with Gala Coral, Ladbrokes shareholders are reported to have voted in favour of the deal this morning.

London business news sources report that 90% of Ladbrokes Plc investors backed the merger, despite hearing Desmond’s arguments against its progression.

Furthermore Ladbrokes governance rejected Desmond’s appeal for a second merger vote to be recast once the UK CMA completes its pending merger review.

In a rare public appearance by the Irish investment magnet, Desmond vented his investor frustrations at the board describing their performance as “abysmal”.

Further scathing was Desmond’s comment that the Ladbrokes board “had not earnt the right to negotiate the transaction of the deal”

Desmond who owns a 2.8% stake in the company, detailed that he felt that the merger would only benefit stakeholders in Gala Coral and gambling services provider Playtech.

“It is clear to me that the GalaCoral and Playtech shareholders are the big winners here with Ladbrokes’ shareholders once again paying the price of management ineptitude.”

Desmond would continually highlight that Ladbrokes had lost huge ground on its rivals.

“Shareholders won’t need me to remind them of the decline in the Ladbrokes share price, nor the fact that peers William Hill, Betfair and Paddy Power are 91%, 100% and 300% respectively ahead over that same period.”