Tabcorp will not merge with Tatts, by Lema Samandar - The Daily Telegraph - 10th August 2008

Gaming giant Tabcorp Holdings says a merger with Tatts Group wouldn't be beneficial to the company.

Tabcorp chief executive Elmer Funke Kupper said today a merger was not high on his agenda, despite remarks by Tatts chief executive Dick McIlwain a month ago supporting such a deal.

"I don't think that's a very good idea for us right now,'' Mr Kupper told ABC's Inside Business program.

"If you look at the benefits of doing that, it would really be in a relatively small part of our company, the synergies between our two companies are not particularly large right now.''

Mr Kupper said Tabcorp had an "enormous agenda'' over the next three years to make sure its business was in the best possible shape for whatever transactions were available to it.

The company also plans to expand Star City Casino and its Keno gaming business in New South Wales hotels and clubs.

Tabcorp last week reported an annual loss after booking writedowns of $707.5 million.

The result was mostly due to the Victorian Government's decision to the end the duopoly held by Tabcorp and Tatts Group over the state's gaming machines after 2012.

Tabcorp said it had a right to compensation of about $687 million but has not specified when legal action to pursue the matter will start.

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