Compulsive Gambling

Unitab CEO Raises Arguments Against Tabcorp Bid

Unitab chief executive Dick McIlwain has recently raised his doubts against Tabcorp's $1.9 billion bid for his wagering firm, publicly asking if effective competition in the Victorian wagering sector could be achieved if the bid is won.

If Tabcorp succeeded in its bid, it would become the monopoly operator in wagering pools in Australia. He added, "If we get taken out, the competitive tension (for the licence) gets taken out overnight."

Mr McIlwain raised his comments less than 24 hours after the Australian Competition and Consumer Commission (ACCC) solicited industry submissions on the likely effects of the takeover before ACCC makes a formal decision.

ACCC has earlier said it doubts Tabcorp's bid carried "potentially significant competition concerns".

Mcilwain has signed a competing merger agreement with Tabcorp rival Tattersall's. He has previously dismissed suggestions that the Tabcorp bid presented better value for shareholders.

Tabcorp's bid values Unitab at $14.25 a share while the Tattersall's merger deal is set at about $12 a share.

Still, Mcilwain said, "We're not prepared to change our recommendation as we're not sure we've got a deal here (with Tabcorp)." He added, "There is still the prospect they could be sideswiped by the ACCC or the Queensland Government (which must also approve Tabcorp's plans). That $14.25 deal could just vaporise overnight ... and we'd be sitting there like the emperor with no clothes on."