London Clubs to raise £49m

CASINOS operator London Clubs International today launched a rights issue to raise £49m in a bid to draw a line under its disastrous investment in the Las Vegas Aladdin casino.

That site nearly brought about LCI's collapse and left it with huge debts. Of today's rights issue, £6m will be the final payment to the American banks which bought Aladdin last year.

A further £38m will be used to fund expansion and refurbishment for LCI's remaining casinos, including London's Les Ambassadeurs and 50 St James. The rest will be used as working capital.

Meanwhile, LCI said it had negotiated a £180.5m financing package from Bank of Nova Scotia, subject to the success of the rights issue, fully underwritten by Rothschild and Panmure.

LCI has been the frequent subject of takeover speculation, which has driven up its share price. From 65p in November, the shares have leaped to 116 3/4p on rumours that Malaysian stakebuilder Resorts World could make a bid. Venture capitalists are also thought to be sniffing around the group.

Finance director Tom Singer has sold £2.3m of shares in bookie William Hill, a day after it reported a fivefold profits rise. Singer sold 485,000 shares, granted under an option scheme, at 486p each.

William Hill said yesterday it would ask shareholders to approve a buyback after seeing pre-tax profits rocket from £32.4m to £170.8m.

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