Ladbrokes is exploding after confirming deal talks

Ladbrokes shares are surging Tuesday morning, after the British bookmaker confirmed it is in talks with gambling and gaming group Gala Coral about a merger.

Shares have opened up over 10% this morning on news of the talks, hitting a 9-month high.

Ladbrokes sharesGoogle FinanceLadbrokes shares have jumped over 10% this morning.

Jim Mullen, CEO Ladbrokes, said: “A merger with Gala Coral could create a combined business with significant scale and has the potential to generate substantial cost synergies, creating value for both companies’ shareholders.”

Gala Coral operates betting shops, bingo halls, and casinos.

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