Rank Bingo Shares Roller Coaster Ride - 04-07-08

April 7 - The share prices of Rank, one of the United Kingdom's biggest gaming and bingo companies, have been experiencing a roller coaster ride as news of possible takeovers, bids, resignations and withdrawals continue to make industry headlines.

When rumors began that Genting, a Malaysian group with significant stakes in the company (11%), had made an impressive bid to buy out Rank, share prices reacted positively. However, last week, Genting issued a statement that it would not be making a bid for a group and, as expected, share prices slumped 10% as a result.

In addition, the company's finance director, Peter Gill announced his resignation last week with a full year's salary but no apparent job on the horizon, leading to widespread speculation about his motives. An analyst last week said: "If there was a meaningful chance of Rank doing significantly better in the next 12 months, the finance director would be less likely to be leaving. And if the company was about to receive a bid, then he would also be hanging on for the next couple of months."

A weekend report on the actions of the Richardson family, however, is expected to increase the share prices again. The family, private property investors with a 9.3% stake in the company, have been secretly upping its stakes in Rank through the use of 'contracts for difference' derivatives. It is believed that via this vehicle, known officially as Richardson Capital, the family has managed to increase its stakes to 11%.

Share prices may also be affected by news of other potential bids for the company. Industry analysts do not rule out the possibility that another company with stakes in the business, the Asian-based Guoco, will put in a bid.

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