Kerzner takes a punt on LCI

COLOURFUL South African entrepreneur Sol Kerzner, who has close links with Britain's wealthy Cayzer dynasty, has emerged as a likely bidder for debt-laden casino group London Clubs International.

Kerzner, the man behind the Sun City complex, disclosed that he held £10m of bonds in LCI and has had talks with the company. There were weekend reports that he had bought £50m of bonds.

His investment vehicle, Kerzner International, said it believed the expected deregulation of gaming in the UK would have a 'positive impact' on the market - a sure sign that he is looking to gatecrash the opening up of the industry.

The Cayzers, through their quoted vehicle Caledonia Investments, have a 17% stake in Kerzner's Sun International Hotels which runs the Paradise Island leisure complex in the Bahamas featuring an aquarium with 40,000 exotic fish.

LCI would be a valuable prize for Kerzner. It owns a number of attractive casinos, including Les Ambassadeurs and 50 St James, but has been hammered by write-offs on an ill-fated venture in Las Vegas. Debts are now more than £220m. The shares have crashed from 348p to 19 1/2p on Monday.

Kerzner is unlikely to have his own way if he decides to move for LCI. Stanley Leisure is keeping a close watch on events.