UPDATE 3-Ladbrokes rights issue raises $457 mln to cut debt

* CEO says impact of recession worse than expected

* One-for-two rights issue priced at 95 pence per share

* To cut debt to 687 mln pounds; final dividend scrapped

* Trading hit by Chelsea, Man Utd wins and too few draws

* Shares down 7.2 percent

(Adds background, updates shares)

By Matt Scuffham

LONDON, Oct 8 (Reuters) - Ladbrokes (LAD.L), Britain's biggest bookmaker, raised 286 million pounds ($457 million) through a surprise rights issue to cut debt, sending its shares to an eight-week low on Thursday.

Ladbrokes, which has 2,700 betting shops, also said it would not pay a final dividend for 2009 as it looked to improve its financial position against the backdrop of a weak economic environment and a run of unfavourable football results.

Chelsea and Manchester United, two of Britain's most heavily-backed clubs, won six of seven games up to end-September. By then, there were only four Premier League draws, bad news for bookies as most punters gamble on a win.

Ladbrokes shareholders will be entitled to purchase one new share for each two they already own at 95 pence per share, a discount of nearly 50 percent to Wednesday's closing price.

The move followed that by rival William Hill (WMH.L), which raised 350 million pounds through a share placing in February while also scrapping its dividend and renegotiating banking facilities to reduce debt. [ID:nLQ816377]

Ladbrokes said net debt would fall to 687 million pounds from 962 million following the underwritten rights issue.

It had said in August it intended to reduce its debt but would "naturally de-lever over time" given conditions in financial markets.

"Given previous comments from management the rights issue has come as a bit of a surprise," said KBC Peel Hunt analyst Nick Batram. "Clearly trading has forced management's hand and this gives us some concern."

Ladbrokes shares, which have underperformed the FTSE All Share Travel & Leisure Index .FTASX5750 by 22 percent since the start of the year, were down 7.2 percent to 168.2 pence at 1000 GMT. William Hill shares were down 4.8 percent.

PREMIER LEAGUE DRAWS

Ladbrokes said operating profit fell by 58 percent to 22.4 million pounds in the quarter to Sept 30, with net revenue down 15 percent. The results were impacted by the weak economic environment and the run of punter-friendly football and horseracing results.

The bookmaking industry has traditionally been seen as resilient in times of adversity when compared with other consumer industries, but trading has been hit in recent months.

William Hill said in August its full-year profit would be below expectations after a drop in weekend customer numbers and a run of punter-friendly results. Irish bookmaker Paddy Power reported a 26 percent drop in first half operating profit. [ID:nL3471580] [ID:nLP555293]

Ladbrokes chief executive Chris Bell told reporters the recession had had a worse impact than he had expected.

Looking ahead to 2010, Bell said: "Unemployment, in my view, is going to have to peak before things start to get better".

A list of British companies have gone cap in hand to investors for cash to shore up balance sheets as a lack of bank lending has left few options for raising funds. [ID:nLN505864]

Ladbrokes said it planned to resume dividend payments at the time of its first-half results next year. ($1 = 0.6252 pound) (Editing by John Stonestreet and Dan Lalor)