LONDON, July 24 (Reuters) - British bookmakers Ladbrokes and Gala Coral on Friday agreed to merge, creating a 2.3billion pound ($3.4 billion) business with Britain's largesthigh street presence and one capable of better competing online.
Ladbrokes said on Friday that it would issue new ordinaryshares to existing Gala Coral shareholders representing 48.25percent of the enlarged company. Existing Ladbrokes shareholderswill own 51.75 percent on the same basis.
To help fund the deal Ladbrokes is placing 93 million newshares, representing 10 percent of the company.
Current Ladbrokes chief executive Jim Mullen will becomeboss of the merged company, which will be named Ladbrokes Coral.The two firms had announced merger talks last month.
($1 = 0.6447 pounds) (Reporting by Neil Maidment. Editing by Jane Merriman)