Arena leaps after it hints at a takeover

Shares in Arena Leisure, the owner of seven racecourses including Doncaster and Windsor, surged more than 15% today after it said it was looking at ways to increase shareholder value including a potential takeover.

After a 7.5% rise in its share price yesterday Arena issued a statement to the stock market this morning. It said: "The company confirms that it is reviewing possible options to increase value for its shareholders, which may include a possible offer for the company.

"This review has only just commenced and there is no certainty that the review will result in any change to the company or an offer being made for the company."

Arena shares were 5.25p ahead at 37.5p.

Favourites to make a takeover bid would be the billionaire Reuben brothers, who are one of Arena's largest shareholders with a near-30% stake. They already own Northern Racing, which runs 10 racecourses.

But any deal will depend on Trevor Hemmings, the leisure millionaire and racehorse owner who owns 41.5% of Arena. He has not formally put his stake up for sale but is reported to be interested if anyone were to offer as much as 60p or 70p a share.

That would mean a bid at almost double the current level at which Arena is valued, at £136 million, with around £32 million of debt.

Arena, with a number of all-weather tracks, accounted for a quarter of all race days held in this country last year.