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| Version 1 | Version 2 |
|---|---|
| Government postpones sale of Tote | Government postpones sale of Tote |
| (10 minutes later) | |
| Plans by the government to sell off state-owned bookmaker the Tote have been shelved as market condition are currently "not appropriate". | Plans by the government to sell off state-owned bookmaker the Tote have been shelved as market condition are currently "not appropriate". |
| Sports Minister Gerry Sutcliffe said the Tote would be retained in public ownership until conditions improved. | Sports Minister Gerry Sutcliffe said the Tote would be retained in public ownership until conditions improved. |
| In July, the government had said it was preparing an auction for the Tote. | In July, the government had said it was preparing an auction for the Tote. |
| The latest setback comes after previous attempts to sell the business to the racing industry and a consortium backed by private equity fell through. | The latest setback comes after previous attempts to sell the business to the racing industry and a consortium backed by private equity fell through. |
| Waiting game | Waiting game |
| In a Commons written statement, Mr Sutcliffe said: "After further work over the summer, I have now concluded that it is not appropriate to pursue a sale in these market conditions. | In a Commons written statement, Mr Sutcliffe said: "After further work over the summer, I have now concluded that it is not appropriate to pursue a sale in these market conditions. |
| "I have therefore decided that the Tote should be retained in public ownership for the medium-term and brought to the market when conditions are likely to deliver value for the taxpayer and racing. | "I have therefore decided that the Tote should be retained in public ownership for the medium-term and brought to the market when conditions are likely to deliver value for the taxpayer and racing. |
| "Finally, the government would like to place on record again its warm appreciation of the loyalty and dedication of the Tote's staff whilst its future has been under consideration." | "Finally, the government would like to place on record again its warm appreciation of the loyalty and dedication of the Tote's staff whilst its future has been under consideration." |
| The Tote was established in 1928. It now employs 4,000 people and is the fourth-largest bookmaker in the UK. | The Tote was established in 1928. It now employs 4,000 people and is the fourth-largest bookmaker in the UK. |
| Falling value? | Falling value? |
| The government made a commitment to sell the Tote in its 2001 election manifesto. | The government made a commitment to sell the Tote in its 2001 election manifesto. |
| In 2007, an alliance of racecourse operators, racehorse owners and Tote management, with debt financing from Lloyds TSB, made a bid for the state-owned bookmaker, but that later fell through. | |
| In April this year, the government appointed investment bank Goldman Sachs to examine options for the business. | |
| Previous bids for the Tote had valued the business at about £400m. But recent reports suggested Goldman Sachs had valued the 529 betting shops and pools business at between £260m and £290m. | Previous bids for the Tote had valued the business at about £400m. But recent reports suggested Goldman Sachs had valued the 529 betting shops and pools business at between £260m and £290m. |
| The Tote, or Horserace Totalisator Board, was founded by Winston Churchill in 1928. | The Tote, or Horserace Totalisator Board, was founded by Winston Churchill in 1928. |
| When it started its purpose was to offer on-course pool betting on horseracing instead of starting price betting with bookmakers. | When it started its purpose was to offer on-course pool betting on horseracing instead of starting price betting with bookmakers. |