By Andrew Starke
Influential Tabcorp shareholders are believed to be opposed to the gaming giant’s ambitions to acquire a pub group, claiming it has no mandate to expand away from its core business.
Tabcorp has been scrutinising cash-strapped pub groups with a view to diversifying and offsetting its risk from a gaming industry that is in the process of a regulatory overhaul.
The Australian Financial Review reports that certain members of the shareholder register believe Tabcorp’s management has zero mandate and is merely a custodian of the business until the credit and regulatory environment has improved and the company’s assets can be split.
The group was linked to a bid for National Leisure and Gaming (NLG) at the end of 2009.
Tabcorp Holdings reported a slump in earnings in February with revenues from both its casinos and poker machines down from last year.
In other Tabcorp news, David Attenborough, has now commenced his role as managing director of its Wagering Division.