As expected the government has just announced its plans for slot machines in bingo halls, and the news looks good for Rank. After an earlier dip, the leisure group's shares are now nearly 7% higher at 88p following the statement.
The government has agreed to raise the number of machines in clubs from four to eight, while emphasising this is a one-off measure designed to help the bingo industry after the closure of 15% of clubs.
Kaupthing had previously calculated that an extra four machines could add £4m - 11% - to Rank's annual profits. And traders believe now the news is out, it may clear the way for a bid from one of Rank's shareholders, such as Guoco, Genting or the Richardsons.
