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Wembley Sinks as Takeover Collapses

LONDON – As reported by Reuters: "UK racetrack owner Wembley Plc (London:WMY.L) lost a third of its value on Monday after its U.S. suitor pulled out of a 309 million pound (US$567 million) takeover deal, citing uncertainty over one of Wembley's key U.S. assets.

"BLB Investors, a consortium including golf courses-to-hotels firm Starwood Capital, said it had allowed its agreed 860-pence-per-share offer to lapse as the environment in which Wembley's Lincoln Park business in Rhode Island operated had become 'highly uncertain.'

"…But industry sources said U.S. gaming group Harrah's Entertainment (NYSE:HET) planned to redevelop a rival casino in Rhode Island, potentially threatening business at Lincoln Park, which analysts say accounts for over 90 percent of Wembley's profits.

"…Wembley shares plunged 32.4 percent to 575 pence by 1058 GMT, their lowest level in more than six months and knocking the firm's market value to about 206 million pounds. The stock rose to 892-1/2p last May at the peak of a takeover battle for the company…"

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