Rank takeover 'inevitable' after it sells off pension plan
3 Mar 2008
LONDON, England -- As reported by The Guardian: "Rank, the bingo and casinos group long seen as a possible takeover target, has removed a key obstacle for potential buyers by agreeing a deal to hive off its pension plan.
"The company is transferring the pension scheme to the investment bank Goldman Sachs, making £20m in cash and avoiding a further £30m in scheduled contributions to the scheme.
"The pension scheme has 20,000 members, reflecting the fact that Rank was once a bigger company.
"Analysts at Merrill Lynch said the deal made Rank a more attractive target by removing risk from its books. The investment bank Jefferies went further and said a 'break-up now seems inevitable'..."