Paddy Power plays down Tote link

PADDY Power has distanced itself from fresh speculation that it is in the running to acquire the Tote betting network in Britain, which the government there is looking to sell in the coming months.

The privatisation of the Tote has been on and off the agenda for the past three years, with the British government originally hoping to sell for around £400m (€476m), but now likely to have to settle for a good deal less than that.

Last Friday was the final deadline for expressions of interest for the business; after which a short-list of formal bidders is expected sometime in the new year, ahead of a final sale — which could take up to next summer to tie up.

While the Tote’s sale has failed before, it is thought that the latest attempt will succeed — although with a price tag of closer to £250m. While both the Tote and Britain’s Department for Culture, Media and Sport — which is directly overseeing the process — declined to comment on the sale, yesterday, the likes of Coral, Sportech, the South African Tote, Betfred and France’s Pari-Mutuel have all been linked as possible interested parties.

So has Paddy Power, although it has long since claimed not to be overly interested in the business, even though it has plans to increase its high street retail presence in Britain.

As well as having a presence at 60 racecourses around Britain, the UK Tote has a high street retail portfolio of nearly 520 shops. Despite suggestions that it definitely wasn’t interested, on Friday, a report over the weekend suggested that Paddy Power might look to purchase a number of the Tote’s retail outlets, as opposed to the entire business.

However, the Irish firm was maintaining its disinterested line yesterday, while it is also understood the British government wants to sell the Tote as a single entity rather than in various parts.