Genting builds up 10 per cent Rank stake

Published on Monday 3 December 2007 12:18

MALAYSIAN company Genting International has taken a ten per cent holding in Grosvenor casino and Mecca bingo operator Rank.

Genting, which runs the Stanley Casino chain, built up the stake in the struggling company over several days last week, fuelling speculation that it has future plans to take over Rank.

The move comes just a week after UK company Rank rejected an approach by Ceaser's Palace casino operator Harrah's Entertainment. There has also been speculation that it is being circled by other predators such as the Gouco Group and Ladbrokes.

Interest in Rank has grown after its share price collapsed due to the impact of the smoking ban, which has led to customers leaving the premises to smoke between main stage games rather than playing interval games or fruit machines.

The move by Genting, which runs Edinburgh's portfolio of Stanley Casinos, including their new outlet at Fountainpark, means that shares in Rank are set to soar from their current value of 100.5p.

Analysts believe that the Malaysian company could use their 10 per cent holding to pursue a possible takeover of Rank, although the stake building may simply be an attempt to block a rival offer.