Oakley backs Broughton’s Tote bid

The move provides the British Airways chairman with a forceful retort to the government's doubts that he will have sufficient financing to go through with his offer to buy the firm.

Oakley's backing will mean Broughton can deliver on his promise to pay for the business even if investors refuse to let him list the Tote on Aim via his Sports Investment Partners vehicle, which he claims will return around £75m to the taxpayer. The private equity firm also intends to take a 25% shareholding in a listed Tote subsidiary, while Broughton would give a further 10% to the racing industry, with industry figures being given first refusal over an extra 25%.

Broughton's closest rival by far is the Betfred betting chain, whose chairman Fred Done maintained earlier this week that Broughton's bid "can't work" and only his near-£200m cash offer provided enough guarantees. Upon hearing of Oakley's involvement, Done said he was "disappointed but not surprised", pointing out that the BA chief had previously said that his bid would not involve a "quick exit" from private equity.

Broughton however asserted that he had merely said he wouldn't be making a "private equity bid".

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• UK / Ireland
• Consumer
• Buyouts