william-hill-approached-by-888-and-rank-for-gambling-merger

William Hill approached by 888 and Rank for gambling merger

UK betting firm William Hill has actually been approached by rival gambling business 888 and Rank Group about a merger.
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William Hill said it would "listen to and consider" any proposition.

However, it was unclear that a mix of Hill, 888 and Rank would "deliver remarkable worth", the company stated, external.
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Online operator 888 and Rank, the UK's biggest gambling establishment chain, stated they saw "substantial commercial reasoning in the combination".
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William Hill stated the approach was "extremely initial", while Rank and 888 said they had not yet made a formal deal to the bookie's board.
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Shares in William Hill increased 4.8%, while 888 shares increased 3.4% and Rank lost 0.5%.

'Surprise'

The move comes simply days after William Hill's president, James Henderson, was ousted from the UK's most significant betting shop operator following a series of revenue warnings.

Mr Henderson, who took the yohaig code helm in August 2014, had failed to fix problems in the company's struggling online business.

In May, its newest trading upgrade, the firm said, external net profits had actually fallen 11% in its online department in the 17 weeks to 26 April.

William Hill's shares have actually dropped 21% given that the start of the year, valuing the former FTSE 100 firm at ₤ 2.7 bn.

David Jennings, an expert at Davy, said the news was "certainly a surprise, considered that the combined value of 888 and Rank is ₤ 1.7 bn".

Rank and 888 said there was "no certainty that any deal will eventually happen".
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Rank's president, Henry Birch, is a former head of William Hill's online division.

Under UK takeover rules, the firms have till 21 August to either make a firm deal or walk away.
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The possible bid follows William Hill attempted to acquire 888 last year in a ₤ 720m bet9ja's welcome offer, however the deal collapsed after 888 rejected the bet9ja's welcome offer as too low.

Ever since, competing wagering firms Ladbrokes and Gala Coral have concurred a ₤ 2.3 bn merger which got preliminary regulator approval in May.

The combined group would make it bigger than William Hill, currently the biggest UK bookie based upon number of shops.
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Irish bookmaker Paddy Power and online operator Betfair likewise agreed to join forces last September.

Gambling market bets on debt consolidation

William Hill and 888 end quote talks
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Betting merger might depend upon shop sales
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20 May 2016
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