Are potential suitors getting ready to take another punt on the Tabcorp share price?

Acquisition speculation is in the air.

| More on:
Two men in a bar looking uncertain as they hold a betting slip and watch TV.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Tabcorp shares are shifting higher on Monday despite no news from the company
  • Reports have surfaced entities are getting more constructive on takeover talks with the company
  • In the last 12 months, Tabcorp shares have gained 7%

The Tabcorp Holdings Ltd (ASX: TAH) share price is up more than 2% at the time of writing, trading at $1.067.

The gain brings Tabcorp's shares to a 12% gain this year to date, up 10% this past month, as illustrated below.

TradingView Chart

Potential bidders? Maybe, maybe not

Reports have now surfaced Tabcorp shares might be in the acquisition limelight again, around one month after the company spun out its The Lottery Corporation business.

It seems the company's got its sights set firmly on the future. It's understood that potential bidders may be interested in a Tabcorp buyout, according to The Australian.

The newspaper reports:

[P]otential bidders have begun planning how to overcome regulatory issues should they lob an offer for Tabcorp – likely between $2.5 billion and $3 billion – and identifying how they believe Tabcorp's operations could be improved and who would be in charge.

Tabcorp reports its results in August. Should they disappoint and its share price fall, expect potential bidders to make a move.

Speaking to The Australian, CEO Adam Rytenskild said that he wanted his company to compete with corporate bookmakers.

"I want us to have more heart and more courage right across everything we do. I want us to be different as a company," he said.

"We are loosening the handcuffs a bit and we want our culture to be about transforming and changing."

Tabcorp share price snapshot

In the last 12 months, Tabcorp shares have clipped a 7% gain.

The company has a current market capitalisation of $2.37 billion.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Share Gainers

3 ASX All Ords shares up 50%+ in March

These ASX shares have been on fire this month. But why?

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Share Gainers

Why Mesoblast, Patriot Battery Metals, Sigma, and Zip shares are pushing higher

These shares are having a good session on hump day. But why?

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Consumer Staples & Discretionary Shares

If you'd put $20,000 in this ASX retail stock at the start of 2023, you'd have $134,000 now

This online retailer has executed a remarkable turnaround for its investors.

Read more »

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

It was back to earth for ASX shares this Tuesday.

Read more »