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

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William Hill approached by 888 and Rank for betting merger
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UK wagering firm William Hill has been approached by competing gambling business 888 and Rank Group about a merger.
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William Hill stated it would "listen to and consider" any proposal.

However, it was unclear that a mix of William Hill, 888 and Rank would "deliver exceptional worth", the business said, external.

Online operator 888 and Rank, the yohaig code UK's most significant gambling establishment chain, said they saw "significant commercial reasoning in the mix".
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William Hill said the approach was "extremely preliminary", while Rank and 888 stated they had not yet made a formal deal to the bookmaker's board.

Shares in William Hill 4.8%, while 888 shares increased 3.4% and Rank lost 0.5%.
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'Surprise'

The relocation comes simply days after William Hill's president, James Henderson, was ousted from the UK's biggest betting shop operator following a series of earnings warnings.

Mr Henderson, who took the helm in August 2014, had failed to deal with issues in the firm's struggling online service.

In May, its latest trading update, the yohaig code firm stated, external net revenues had fallen 11% in its online division in the 17 weeks to 26 April.

William Hill's shares have dropped 21% since the start of the year, valuing the previous FTSE 100 company at ₤ 2.7 bn.

David Jennings, an expert at Davy, stated the news was "certainly a surprise, considered that the combined worth of 888 and Rank is ₤ 1.7 bn".
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Rank and 888 said there was "no certainty that any deal will ultimately take location".

Rank's chief executive, Henry Birch, is a previous head of William Hill's online division.

Under UK takeover rules, the yohaig code firms have till 21 August to either make a company deal or stroll away.

The possible bid comes after William Hill tried to get 888 last year in a ₤ 720m bet9ja's welcome offer, but the offer collapsed after 888 turned down the deal as too low.

Ever since, competing betting companies Ladbrokes and Gala Coral have agreed a ₤ 2.3 bn merger which got preliminary regulator approval in May.

The combined group would make it bigger than William Hill, presently the largest UK bookie based upon variety of stores.
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Irish bookie Paddy Power and online operator Betfair likewise accepted join forces last September.
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