Rank pension deal fuels takeover talk

By Marc Jones

LONDON (Reuters) - Rank Group (RNK.L) unveiled plans for Britain's biggest pension transfer deal on Friday paving the way for a potential takeover of the troubled bingo, casino and online gambling firm.

"This means that Rank gets the risk off its books... We view this as good news as it could be seen as removing a barrier to takeover," said Merrill Lynch analysts.

The transfer of its 700 million pound pension scheme to Goldman Sachs (GS.N) will earn it least 20 million pounds, save it more than 30 million pounds in contributions and clears the way for a sell-off or splitting of the firm, according to analysts.

"A break-up now seems inevitable and the transfer of the pension is a start," said analysts at Jefferies.

Rank has had a torrid time over the last year. Its bingo clubs have been hammered by a ban on smoking and the forced removal of nearly 1,000 lucrative slot machines, while its casinos have been hit by a surprise hike in tax.

The firm's share price slumped more than 20 percent after a profit warning in October and in December it scrapped its final dividend and shelved 30 million pounds of projects as its woes continued.

Takeover speculation has been sparked by Asian gaming giants Genting (GENT.KL) and Guoco (0053.HK) and the Richardson property and haulage family, building big stakes in the firm over the past few months.

TOUGH YEAR