Large UK Bingo Group Denies Sales Rumors
Date published: 5 August 2009
This SlideShowPro photo gallery requires the Flash Player plugin and a web browser with JavaScript enabled.
The Gala Coral Group is one of the UK's leading gambling operations
and is synonymous with bingo, one of the nation's favorite high street and
online pastimes, which is why rumors that the group was being forced to 'split
and sell off' were met with surprise, not least by Gala Coral executives.
According to reports, the rumors started following an article that appeared
recently in leading UK newspaper, the Observer, which suggested that the Gala
Corel Group is financially hard-pressed, hence the need to raise capital. In
response, senior Gala Coral executives vehemently denied the rumors.
In fact, Gala Coral Group Chairman of the Board, Neil Goulden was said to be
'incensed' by the Observer article. It has since been revealed that the
'offending' article came about as a result of a document that came into the
paper's possession, which was prepared by a third party and used out of context.
The third party was Global M&A, a leading independent merger and acquisition
investment bank, who prepared the document on behalf of the Royal Bank of
Scotland as a platform from which to generate and explore 'new ideas'. It was
reportedly not discussed or cleared with the top brass at Gala Coral.
Said Goulden, 'The article in my opinion was deliberately misleading, as the
journalist knew full well that the document he has in his possession was
prepared by Global M&A from Royal Bank of Scotland touting around
international gambling companies, mentioning there might be an opportunity at
Gala Coral.
'It was not discussed with our lenders and not discussed with us. It was a
speculative piece of work by them,' he concluded. The Observer article has not
only embarrassed the Gala Coral Group, but has left egg on the face of the
offending journalist, the Royal Bank of Scotland and, of course, Global M&A.
Global M&A Chairman Michael Gibbons reportedly apologized profusely to Mr.
Goulden admitting that his organization 'singularly failed in their duty of
care'. Gibbons assured him that these kind of inaccuracies will not be repeated
and has taken steps to ensure that speculative articles are curbed in the
future.
|
