Ladbrokes owner Entain is trying to sell its troubled Intertrader stockbroking business.
Entain, the FTSE100 company behind bookmaker Ladbrokes and online bingo firm Gala Coral, was expanding Intertrader as recently as 2018.
The decision to offload it follows a row with property tycoon Robert Tchenguiz, who was one of its largest clients.
Change of direction: Entain, the FTSE100 company behind bookmaker Ladbrokes and online bingo firm Gala Coral, was expanding Intertrader as recently as 2018
Intertrader – along with other listed brokers CMC Markets and IG – has been pursuing the entrepreneur for millions of pounds after his bet on transport firm FirstGroup turned sour.
Last year, Tchenguiz built up a near 7 per cent shareholding in FirstGroup – which operates the Great Western Railway and TransPennine Express – through several brokers, including Intertrader.
At one point, his investment in FirstGroup, which also runs many bus services, was worth up to £100million.
However, the pandemic made FirstGroup’s share price slump and Tchenguiz’s brokers were forced to sell his stock, leaving a massive loss. Tchenguiz is refusing to pay some of what the brokers claim he owes them.
Entain, which last month received an £8billion takeover bid from America’s MGM Resorts, said a sale of its Intertrader business was ‘highly probable’ within a year.
A spokesman for Tchenguiz declined to comment.
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