Wow, for all those "Ladbrokes is probably safe", I sure hope so;
http://uk.biz.yahoo.com/08102009/325/la ... llion.htmlLadbrokes to raise £275 million
LONDON (Reuters) - Ladbrokes , the country's biggest bookmaker, said it planned to raise 275 million pounds through a deeply-discounted rights issue it will use to trim its debt, sending its shares down as much as 8 percent on Wednesday.
Ladbrokes, which has 2,700 betting shops, also said it would not pay a final dividend on 2009 earnings as it looks to improve its financial position against the backdrop of a weak economic environment and a run of unfavourable football results.
The move by Ladbrokes echoes that of rival William Hill , which raised 350 million pounds through a rights issue in February while also scrapping its dividend and renegotiating banking facilities as it looked to reduce debt.
Ladbrokes' shareholders will be entitled to purchase 1 new share for each 2 they already own at a price of 95 pence per share, a discount of nearly 50 percent to Wednesday's closing price of 181 pence.
The company said its net debt will fall to 687 million pounds from 962 million following the placing.Shares in Ladbrokes, which have underperformed the FTSE All Share Travel & Leisure Index by 22 percent since the start of the year, were down 6.8 percent at 168.8 pence at 0740 GMT having been as low as 165 pence.
William Hill shares were down 3 percent at 171.
"We have a sell recommendation on the (Ladbrokes) shares and, on the basis that betting is impacted by unemployment and unemployment is a lagging indicator, we will retain that recommendation," said Astaire Securities analyst Mark Brumby.
(Reporting by Matt Scuffham, editing by Will Waterman, John Stonestreet)