Bookmakers Ladbrokes and Gala Coral agree $3.4 bln merger

LONDON, July 24 (Reuters) - British bookmakers Ladbrokes and Gala Coral on Friday agreed to merge, creating a 2.3 billion pound ($3.4 billion) business with Britain's largest high street presence and one capable of better competing online.

Ladbrokes (LSE: LAD.L - news) said on Friday that it would issue new ordinary shares to existing Gala Coral shareholders representing 48.25 percent of the enlarged company. Existing Ladbrokes shareholders will own 51.75 percent on the same basis.

To help fund the deal Ladbrokes is placing 93 million new shares, representing 10 percent of the company.

Current Ladbrokes chief executive Jim Mullen will become boss 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)