Rank Group Plc plans to sell its Deluxe Media DVD business and is
considering ways to split off its film unit to focus on gambling, online
casinos and the
Hard Rock Cafe chain. The shares fell on disappointment more progress
hasn't been made.
Rank is in talks with an unspecified number of bidders for Deluxe
Media, a business that makes and distributes DVDs, Chief Executive Mike
Smith said today in an interview. A competitor probably will buy the
business, he said. The London-based company today reported a loss for
the year ended Dec. 31 because of a one- time charge for the proposed
sale.
The company, which has distributed movies for more than 50 years, is
concentrating on its gambling business and online casinos as the government plans to relax
legislation governing the $3.8 billion U.K. gaming industry. Smith said
in September Rank would consider a spinoff, sale or initial public
offering for Deluxe.
``We were expecting greater progress to have been made at this
stage,'' Charles Wilson, an analyst at Bridgewell Securities in London,
said in a research note. ``This could have a negative impact on the
share price in the short term.''
