According to The Mail On Sunday, Gala Bingo have been approached by Blackstone with an offer of around £300 million in exchange for an equity stake of between 40-60 percent.

Blackstone the American investors have been granted due dilligence at the 11th hour of new structure proposals being considered with the existing investors of Cinven, Candover and Permira which would keep the group together, but this late proposal could throw these plans into doubt.

Gala Coral has seen the offer as positive step to attracting more investors to come forward and speculators are hinting that a bidding war or auction could emerge.

Gala Coral who are the UK's largest bingo operator as well as owning 27 casinos and over 2000 betting shops are looking for further investment whilst its struggles to serice its £2.5 billion debt pile. Gala Bingo was thought to be valued at around £5 billion when at its peak.

Gala have expressed they need around £300 million to continue its future trading plans and maintain market leader but are not allowed to touch the £250 million cash reserve as this is part of its strict banking covenant.