Rumors push Tabcorp shares up

AUSTRALIA – As reported by the Sydney Morning Herald: "Speculation Publishing and Broadcasting Ltd or Macquarie Bank could be lining up a consortium to take over the country's largest gambling group have sent Tabcorp shares soaring.

"The shares closed more than 90c higher at $18 yesterday on rumours PBL and Macquarie were behind a series of large trades throughout the day that pushed volumes to double their normal levels.

"In the past three weeks shares in Tabcorp, owner of Sydney's Star City casino, have surged 8 per cent.

"Private equity raiders have also been touted as potential bidders for the wagering and gaming business, which recently saw its chief executive Matthew Slatter forced out the door. His removal came after he admitted the company faced a challenging year, with weak performances at its casinos and a blowout in costs resulting in first-half profit slumping 22 per cent to $224 million…"