3^rd July 2008- For increasing its casino business to attract the take over bids and to increase, its valuation TABCORP has shelved its plans. However, there is a fear that the disturbance in the share market with the very high cost of debt will affect the competitive auction.

The Investment banking adviser of UBS has informed The Herald about the split Tabcorp into separate casino and gaming wagering companies.

After Victoria has decided to take away, Tabcorp and its rival Tatts group their licenses of the poker machines the Tabcorp is looking out for the new growth strategies.

Tabcorp, which was the highest bidder that year, holds the state’s single wagering license.

Since April the Tabcorp shareholder value have been dropping by $2.5 billions.

Greg Fraser, who was an analyst at Shaw Stockbroking, said what was left over would still have to have an attraction to stand alone, and at this stage, it did not. After years of building an integrated gambling business, a demerger “would be a complete about-face” for Tabcorp.

He added- “It wouldn’t be a good strategy to do that while so many of these other issues are unresolved.”

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