William Hill Approached By 888 And Rank For Gambling Merger
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William Hill approached by 888 and Rank for gambling merger
UK wagering company William Hill has been approached by rival betting companies 888 and Rank Group about a merger.
William Hill said it would "listen to and think about" any proposition.
However, it was unclear that a mix of William Hill, 888 and Rank would "deliver superior worth", the company said, .
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Online operator 888 and Rank, the UK's biggest casino chain, said they saw "considerable industrial logic in the combination".
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William Hill said the method was "extremely preliminary", while Rank and 888 said they had actually not yet made a formal deal to the bookie's board.
Shares in William Hill increased 4.8%, while 888 shares increased 3.4% and Rank lost 0.5%.
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'Surprise'
the yohaig code relocation comes just days after William Hill's president, James Henderson, was ousted from the UK's most significant betting shop operator following a series of profit cautions.
Mr Henderson, who took the helm in August 2014, had actually failed to deal with issues in the company's having a hard time online business.
In May, its newest trading update, the firm stated, external net incomes had actually fallen 11% in its online department in the 17 weeks to 26 April.
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William Hill's shares have actually dropped 21% considering that the yohaig code start of the year, valuing the previous FTSE 100 company 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 transaction 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 guidelines, the firms have until 21 August to either make a company bet9ja's welcome offer or stroll away.
The prospective bid follows William Hill attempted to get 888 in 2015 in a ₤ 720m deal, however the offer collapsed after 888 turned down the deal as too low.
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Ever since, rival wagering companies Ladbrokes and Gala Coral have concurred a ₤ 2.3 bn merger which received initial regulator approval in May.
the yohaig code combined group would make it bigger than William Hill, currently the largest UK bookmaker based on number of shops.
Irish bookmaker Paddy Power and online operator Betfair likewise concurred to sign up with forces last September.
Gambling market bets on consolidation
William Hill and 888 end quote talks
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Betting merger may depend on store sales
20 May 2016
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Paddy Power Betfair to cut 650 jobs
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