Rank Board in another u-turn: CEO returns

Rank Interactive has been subject to takeover efforts by Guoco Group for the past two months that have thrown the company into turmoil with the board zigzagging back and forth with regards to accepting the takeover bid or not.

As we reported last week Ian Burke, Rank Interactive CEO since March 2006 and Paddy Gallagher, Finance Directors of Rank since June 2008, have handed in their resignations as soon as the Rank board announced its plans of advising shareholders to accept the 150 pence bid for the gaming entertainment giant.

Anyone who was naïve enough to think that the resignation will put an end to the schizophrenic state the Rank board seems to be suffering from, must have been surprised when the Rank board has yet again changed its mind and decide it would recommend shareholders declining the big offer.

This is the fifth time the Rank board changes its mind regarding the takeover bid. Economic commentators have commented that the situation had reached comedic levels but it did affect Ian Burke and pushed him to regain his CEO post less than a week post-resignation.

The Rank board announced to the London Stock Exchange yesterday morning that it is advising its shareholders to reject the 150p share offer as it is deemed as undervaluing the company’s true value. This is due to Guoco’s guarantee to maintain Rank as a listed company.

Rank Interactive is a huge land-based gaming entertainment business based in the UK and operates casinos, bingo halls and other gambling venues throughout the UK. Its current share price stands on 149.80 pence and Rank board now feels the bid needs to represent the company’s potential and not proximity to its current share price.