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William Hill Rank and 888's ₤ 3.16 bn quote
Bookmaker William Hill has actually turned down a ₤ 3.16 bn takeover deal from online operator 888 and gambling establishment huge Rank.
The quote, in shares and money, was called "highly opportunistic" by Gareth Davis, chairman of William Hill, who said it did not reflect its true value.
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The deal would create the UK's third-largest online wagering group with incomes of ₤ 2.7 bn.
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William Hill shares have actually risen 22% to 334p because 888 stated last month that it was considering a joint bid with Rank.
The bid would indicate 888 taking over Rank, with the recently formed business then purchasing William Hill.
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Mr Davis stated that it would include some ₤ 2.2 bn in debt. He stated: "It is a very complicated three-way combination at a low premium including considerable risk for William Hill shareholders: execution threat, combination threat and dangers of materially increased utilize."
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But Rank and 888 argue that its company plan would increase the company's worth to approximately 408p a share - or ₤ 3.6 bn.
888 and Rank said that they see "significant commercial reasoning in the combination, through combination of their complementary online and land-based operations, delivery of significant income and expense synergies, and from the yohaig code anticipated benefits of economies of scale which will accrue to all investors."
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Turnaround
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William Hill said that it was currently seeing a turnaround in its own online organization, and while a merger would offer it access to 888's offshore markets it responded that it was already seeing growth of 12% in its Australia operation and 49% in running profits in the US.
William Hill tried and failed to get 888 in a ₤ 700m deal in 2015.
John Colley, a Teacher of Practice at Warwick Business School stated the bid "looks particularly opportunist as William Hill have lost their president James Henderson after 2 years of frustrating efficiency with the shares at a lowly 336p compared to the 364p offer.
"However William Hill is now in play and others might be in addition to enhanced offers and more money.
"The industry is combining quickly and William Hill, Rank and 888 will be part of that one way or another. For this promotion code reason, Rank and 888 must also beware."
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Other mergers in the market consist of Ladbrokes and Coral signing a ₤ 2.3 bn merger in July and Paddy Power and Betfair joining forces in September.
William Hill shares hit by earnings alert
23 March 2016
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William Hill Rejects Rank and 888's ₤ 3.16 Bn Bid
Chester Denman edited this page 2025-09-23 03:23:37 +08:00