Macao is a joint venture owned by Publishing & BroadcastingLtd (PBL) and Hong Kong businessman Lawrence Ho's MelcoInternational Development. The markets took seriously news in apublished report that the joint owners planned to seek a US listingdespite the report citing unnamed sources. The report added thatPBL is working up plans to float a 20% stake on the Nasdaq index, adeal which would value the joint venture at more than £5billion.Neither company would comment nor would their advisersCredit Suisse, UBS and Citigroup.

But analysts believe Melco and PBL want to take advantage ofgrowing American investor interest in China's restricted gamingsector and that a $5-billion valuation for the gaming joint ventureis "plausible". One added that funds raised with an IPO could beused to expand across Asia as well as in Macao, which is this yearexpected to overtake Las Vegas as the world's largest gamingmarket. Revenue from gambling in Macao is expected to exceed $6billion this year. It is understood the flotation depends on thetwo companies getting clearance from regulators to hold a fullMacao casino license, which was acquired from Steve Wynn, the LasVegas casino entrepreneur, in a $900-million deal earlier thisyear.

Last week, the partners spent HK$1.5 billion ($193 million)acquiring land to build their third casino in Macao, the only placein China where gambling is legal.