This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-13640042

The article has changed 11 times. There is an RSS feed of changes available.

Version 2 Version 3
Betfred wins auction for Tote with £265m deal Betfred wins auction for Tote with £265m deal
(40 minutes later)
UK-based bookmaker Betfred has been chosen to buy the Tote after an auction process that began in November.UK-based bookmaker Betfred has been chosen to buy the Tote after an auction process that began in November.
Betfred, the country's fourth-biggest bookmaker, will pay £265m for the business.Betfred, the country's fourth-biggest bookmaker, will pay £265m for the business.
The sale is subject to consultation with the Tote's employees and is expected to be completed in about four to eight week' time.The sale is subject to consultation with the Tote's employees and is expected to be completed in about four to eight week' time.
The Tote has 517 High Street shops and the monopoly to run pool betting online and at 60 UK racecourses.The Tote has 517 High Street shops and the monopoly to run pool betting online and at 60 UK racecourses.
The sale agreement signals the end of a 14-year attempt by governments to privatise the betting group, which employs more than 3,500 staff.The sale agreement signals the end of a 14-year attempt by governments to privatise the betting group, which employs more than 3,500 staff.
Betfred's main rival in the auction was Sport Investments Partners (SIP), a consortium led by the British Airways chairman Martin Broughton.Betfred's main rival in the auction was Sport Investments Partners (SIP), a consortium led by the British Airways chairman Martin Broughton.
The Culture Secretary, Jeremy Hunt said: "It was a closely fought contest.The Culture Secretary, Jeremy Hunt said: "It was a closely fought contest.
"Of the £265m in the headline price only just over £90m will end up being paid to the Treasury.""Of the £265m in the headline price only just over £90m will end up being paid to the Treasury."
That sale price is around a third lower than the £400m first offered by a consortium of racecourse owners in 2007.
That was turned down by the then-Labour government because it was backed by private equity.
The consortium reformed and made another offer, believed to be about £320m, which was also rejected for not being enough.
Another previous sale attempt ended in 2006 after the European Commission said that the price was too low and tantamount to state aid.
'Good deal''Good deal'
As part of the deal, Betfred will keep exclusive control of the pool betting system on UK racecourses for seven years.As part of the deal, Betfred will keep exclusive control of the pool betting system on UK racecourses for seven years.
In return, it has committed to paying the racing industry £11m to March 2012, with payments of £9m a year for the next six years of the licence.In return, it has committed to paying the racing industry £11m to March 2012, with payments of £9m a year for the next six years of the licence.
Pool betting differs from that offered by other bookmakers.Pool betting differs from that offered by other bookmakers.
The Tote takes a percentage of stake money placed. Of this percentage, some is used to cover the Tote's expenses while the rest goes to the racing industry.The Tote takes a percentage of stake money placed. Of this percentage, some is used to cover the Tote's expenses while the rest goes to the racing industry.
The rest of the stake money is paid out to winners.The rest of the stake money is paid out to winners.
Betfred's executive chairman, Fred Done, said in a statement: "Buying the Tote has been an ambition for years, so I am absolutely delighted.Betfred's executive chairman, Fred Done, said in a statement: "Buying the Tote has been an ambition for years, so I am absolutely delighted.
"The Tote is an opportunity I just could not miss. Over the coming months I will develop the Tote's relationship with the sport into a highly successful commercial partnership.""The Tote is an opportunity I just could not miss. Over the coming months I will develop the Tote's relationship with the sport into a highly successful commercial partnership."
The Tote's 517 UK shops will be re-branded Betfred, giving the new business a total of 1,350 betting shops in the UK, compared with leaders Ladbroke and William Hill who have more than 2,000 each and Gala Coral's 1,600.
Betfred wants to continue using the Tote name at the UK's 60 racecourses.
Track owners have traditionally supplied marketing, accommodation and sponsorship to the Tote.
But some are said to be less happy to provide these facilities to a private company.
The gambling and racing minister, John Penrose, said the government had "bent over backwards to deliver a good deal for racing".The gambling and racing minister, John Penrose, said the government had "bent over backwards to deliver a good deal for racing".
He added: "Most people can't understand why, in the modern world, the government should be even part owner of a bookie. So we pledged last year to end years of dithering and resolve the future of the Tote, and today we have done just that."He added: "Most people can't understand why, in the modern world, the government should be even part owner of a bookie. So we pledged last year to end years of dithering and resolve the future of the Tote, and today we have done just that."
The Tote was set up 83 years ago by Winston Churchill to provide a safe haven for punters, as it was controlled by the state and beyond the reach of illegal bookmakers.The Tote was set up 83 years ago by Winston Churchill to provide a safe haven for punters, as it was controlled by the state and beyond the reach of illegal bookmakers.