Unbridled excitement was unleashed by the market and analysts as Betfair (BET) and Paddy Power (PAP) became the latest gambling duo to propose a merger. At the time of writing, both stocks were up more than 17 per cent and analysts predicted a potential powerhouse would emerge. Based on the most recent full-year data, the merged entity would be one of the world's largest public online betting and gambling companies by revenue at more than £1.1bn.
Broker Peel Hunt upgraded its hold recommendation on Paddy Power to a buy, which prompted analyst Nick Batram to call the merged business a "must own" in the sector. Daniel Stewart & Company's Sophie Blandford expected "enhanced shareholder value" as a result of likely cost and revenue synergies between the companies.