Rank rising on pensions buzz

Eyes down for a full house at Rank. Shares of the bingo and casinos operator rose 1¾p to 98p on hopes that the imminent sale of its £700m pension scheme to Goldman Sachs will pave the way for one of its major shareholders to launch a full-scale offer for the group.

Rank was the first major public company to put its pension scheme up for sale last September and has apparently been in exclusive talks with the American broking giant for weeks.

Rank's fortunes and profits have not only been hit by the smoking ban in the UK, but changes in gaming machine regulations and increased casino taxation.

The collapse of the share price from a year's high of 231p to a low of 77¾p has attracted hungry stakebuilders and 26%-plus of the group's equity is now held in potentially threatening hands. Malaysian gaming giant Genting, which already owns Stanley Leisure casinos, sits on 11.03% and is forever tipped as the likeliest bidder.

But Guoco, an investment group run by Quek Leng Chan which acquired the Clermont Club from Rank in 2006, recently increased its shareholding to 6% and could also be interested.

The Richardson family of the West Midlands sits on 9.3% but is believed to be a willing seller at the right price. All in all, dealers say that once Rank gets the pension fund monkey off its back, it will lose its independence before you can shout 'house'.

Source