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An investment vehicle which began building a stake in the London-listed gambling software group Playtech earlier this year is weighing plans for a £3bn takeover of the company.

Sky News has learnt that Gopher Investments is working with bankers at Rothschild on an offer that would trump a recommended bid announced last month from Aristocrat Leisure, an Australian company.

City sources said on Sunday that Gopher’s deliberations were not guaranteed to lead to a formal offer, but that it was looking “seriously” at doing so.

Gopher is expected to issue a statement confirming its interest in bidding for the whole of Playtech on Monday morning.

A bidding war for Playtech would be the latest development in a frenzied year of corporate deal-making in the global gambling industry.

Playtech, which has a market value of close to £2.2bn, saw its shares surge in October when it announced that its board was endorsing a 680p-a-share offer from Aristocrat.

Including the London-listed company’s £600m debt-pile, the offer valued Playtech at £2.7bn.

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A series of irrevocable undertakings from Playtech shareholders to accept the offer would lapse if any rival suitor offered a price at least 10% higher than the Aristocrat bid.

That implies Gopher would need to bid at least 748p-a-share to secure a board recommendation.

Playtech claims to be the world’s largest supplier of online gaming and sports betting software.

Gopher has become one of Playtech’s most prominent shareholders this year, waging a bitter fight to acquire its financial trading arm, Finalto, for $250m.

The Aristocrat offer for Playtech is conditional on the sale of Finalto to Gopher being completed.

It was unclear this weekend how Gopher would structure an offer for the entirety of Playtech given the fact that the Finalto transaction has yet to reach its conclusion.

Gopher describes itself as “an affiliate” of TT Bond Partners (TTB), which through its Hong Kong-regulated entity advised Gopher on the Finalto deal.

TTB says it has “significant experience” of investing in technology-driven financial services businesses, including in the US, Pakistan, India and Hong Kong.

Teresa Teague, a partner at TTB, said in relation to the Finalto deal: “As a major shareholder in Playtech, Gopher is pleased to conclude a transaction delivering value for all shareholders and looks forward to working with the Playtech board and continuing its constructive dialogue to support growth.”

Significant volumes of Playtech stock have been traded in recent days, prompting market speculation of a possible counterbid.

The global gambling sector has seen a deluge of major corporate deals this year, including most notably in the UK the takeover of William Hill by Caesars Entertainment, with its British operations subsequently acquired by 888, the London-listed group.

More recently, DraftKings, a US-based gambling giant, abandoned plans to bid for Entain, the owner of Ladbrokes and Coral in the UK.

Playtech declined to comment on Sunday, while Gopher’s public relations representatives have been contacted for comment.

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Ex-Post Office head of IT says Paula Vennells ‘hoped to avoid’ inquiry – and reveals she blocked her number

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Ex-Post Office head of IT says Paula Vennells 'hoped to avoid' inquiry - and reveals she blocked her number

A former Post Office executive has said she was forced to block ex-boss Paula Vennells’ phone number after the ex-CEO called multiple times asking for help to avoid an independent inquiry into the Horizon IT scandal.

Lesley Sewell, previously the company’s head of IT, told the Post Office inquiry on Thursday that former CEO Ms Vennells had reached out to her four times between 2020 and 2021.

Ms Sewell said that she blocked Ms Vennells’ number due to discomfort with the contact.

In her witness statement to the probe, Ms Sewell said that one of Ms Vennells’ emails referenced the need to fill in memory gaps regarding Horizon and “Project Sparrow”, a committee addressing issues with forensic accountants who identified flaws in the accounting system.

“Paula contacted me on four occasions in total. I recall blocking her number after the last call as I did not feel comfortable with her contacting me,” Ms Sewell said.

“I had not spoken to Paula since I had left POL [Post Office Limited] in 2015.”

Lesley Sewell giving evidence to the Post Office inquiry. Pic: PA
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Lesley Sewell giving evidence to the Post Office inquiry. Pic: PA

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According to Ms Sewell’s testimony, former chief executive Ms Vennells said that she had “been asked at short notice” to appear before a parliamentary select committee on “all things Horizon/Sparrow and need to plug some memory gaps”.

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Ms Sewell says Ms Vennells added: “My hope is this might help avoid an independent inquiry but to do so, I need to be well prepared.”

Ms Sewell, who struggled to contain her emotions and broke down in tears while giving her oath at the start of her inquiry evidence, was offered support and breaks as needed by chairman Sir Wyn Williams.

Sir Wyn told the former executive: “Ms Sewell, I appreciate this may be upsetting for you, Ms Price will ask you a number of questions in a proper and sensible manner, but if at any time you feel you need a break, just let me know, all right?”

Lesley Sewell taking the oath at the Post Office inquiry. Pic: PA
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Lesley Sewell taking the oath at the Post Office inquiry. Pic: PA

The Post Office has faced significant scrutiny following the ITV drama Mr Bates Vs The Post Office which highlighted the Horizon IT scandal.

The faulty system led to the prosecution of more than 700 sub-postmasters between 1999 and 2015, with many still awaiting full compensation despite government announcements regarding payouts for those with quashed convictions.

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London City Airport lands FitzGerald as first female boss

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London City Airport lands FitzGerald as first female boss

London City Airport will on Thursday name its first permanent female chief executive as it targets approval of an expansion plan that would create nearly 1,500 jobs.

Sky News understands that the Docklands airport has told staff that Alison FitzGerald, who has been co-CEO since January alongside finance chief Wilma Allan, has landed the role.

Ms FitzGerald has worked at City Airport – the capital’s fourth-busiest – for more than a decade, becoming chief information officer and then chief operating officer.

London City Airport 3
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A woman wearing a face mask walks by London City Airport, which suspended its operations during the pandemic

She replaces Robert Sinclair, who left in January after six years to become boss of the High Speed 1 rail link.

The airport is owned by a consortium of Canadian pension funds and Kuwait’s sovereign wealth fund, which have backed a plan to increase its annual passenger traffic from about 6.5m to 9m.

It is appealing against Newham Council’s rejection of a planning application that would see it extend operating hours at the site, which is popular with City commuters.

The airport’s proposals include no increase in the annual number of flights and, in what it claims is a first for a UK airport, a commitment that only cleaner, quieter, new generation aircraft will be allowed to fly in any extended periods.

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The runway at London City Airport

The appeal is being reviewed by the Independent Planning Inspector.

Its change of leadership makes London City the second of the capital’s airports to name a new CEO in quick succession, following the arrival at Heathrow of Thomas Woldbye last year.

“London City delivers one of the best passenger experiences in the UK and I’m committed to building on this success even further,” Ms FitzGerald said.

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Thames Water investors to quit boards amid spectre of bailout

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Thames Water investors to quit boards amid spectre of bailout

Representatives of Thames Water’s multinational syndicate of shareholders are poised to quit as directors of its corporate entities after refusing to inject the billions of pounds of funding required to bail it out.

Sky News has learnt that a number of board members at companies connected to Kemble Water Finance, Thames’s parent, are expected to resign in the coming days.

City sources described the move as “the logical next step” after the owners of Britain’s biggest water utility said they would not commit more than £3bn to help upgrade its ageing infrastructure and shore up its debt-laden balance sheet.

A default on part of Thames Water‘s holding company debts last month has raised the prospect that the company is heading towards special administration, a form of insolvency that would effectively leave the government liable for managing a utility firm which serves nearly a quarter of Britain’s population.

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Thames Water under threat

Thames Water is owned by a group of sovereign wealth funds and pension funds from countries including Abu Dhabi, Australia, Britain, Canada and China.

A number of the investors are represented on boards which sit at various points in the group’s labyrinthine capital structure.

It was unclear on Wednesday whether Michael McNicholas, a representative of the giant Canadian pension fund Omers and who sits on the board of Thames Water Utilities Limited, was among those in the process of stepping down.

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Along with the rest of the privately owned water industry, Thames Water faces a crucial moment next month when Ofwat, the industry regulator, publishes its draft determination on companies’ five-year business plans.

The draft rulings will be subject to negotiation before final versions are published in December.

Thames Water and a spokesman for Kemble declined to comment.

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