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

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William Hill approached by 888 and Rank for gambling merger
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UK betting company William Hill has actually been approached by rival betting business 888 and Rank Group about a merger.
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William Hill stated it would "listen to and think about" any proposal.

However, it was unclear that a mix of William Hill, 888 and Rank would "provide superior value", the business stated, external.

Online operator 888 and Rank, the yohaig code UK's most significant casino chain, stated they saw "substantial commercial reasoning in the mix".
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William Hill said the technique was "extremely initial", while Rank and 888 said they had not yet made an official deal to the bookie's board.

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 wagering shop operator following a series of earnings cautions.

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

In May, its latest trading update, the company said, external net profits had fallen 11% in its online division in the 17 weeks to 26 April.

William Hill's shares have dropped 21% given that the start of the year, valuing the previous FTSE 100 company at ₤ 2.7 bn.
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David Jennings, an expert at Davy, said the news was "undoubtedly a surprise, considered that the combined worth of 888 and Rank is ₤ 1.7 bn".

Rank and 888 said there was "no certainty that any deal will eventually happen".

Rank's president, Henry Birch, is a previous head of William Hill's online department.

Under UK takeover rules, the companies have until 21 August to either make a firm deal or walk away.

The potential quote follows William Hill tried to get 888 in 2015 in a ₤ 720m bet9ja's welcome offer, however the deal collapsed after 888 rejected the deal as too low.

Since then, rival wagering companies Ladbrokes and Gala Coral have actually agreed a ₤ 2.3 bn merger which received preliminary regulator approval in May.
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The combined group would make it bigger than William Hill, the largest UK bookie based upon number of shops.

Irish bookie Paddy Power and online operator Betfair also concurred to join forces last September.

Gambling market bets on consolidation

William Hill and 888 end quote talks

Betting merger might depend upon store sales
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20 May 2016
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