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

William Hill approached by 888 and Rank for gambling merger

UK betting company William Hill has been approached by rival gambling companies 888 and Rank Group about a merger.
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William Hill said it would "listen to and consider" any proposition.
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However, it was not clear that a mix of William Hill, 888 and Rank would "provide superior worth", the business said, external.

Online operator 888 and Rank, the UK's biggest casino chain, stated they saw "significant industrial reasoning in the combination".

William Hill stated the technique was "highly initial", while Rank and 888 said they had actually 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 rose 3.4% and Rank lost 0.5%.

'Surprise'
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The relocation comes simply days after William Hill's primary executive, James Henderson, was ousted from the UK's greatest betting shop operator following a series of earnings cautions.

Mr Henderson, who took the helm in August 2014, had working to solve issues in the yohaig code firm's struggling online company.

In May, its latest trading update, the yohaig code company said, external net earnings had actually fallen 11% in its online division in the 17 weeks to 26 April.
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William Hill's shares have actually dropped 21% because the start of the year, valuing the previous FTSE 100 company at ₤ 2.7 bn.

David Jennings, an analyst at Davy, stated the news was "undoubtedly a surprise, provided that the combined value of 888 and Rank is ₤ 1.7 bn".
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Rank and 888 stated there was "no certainty that any deal will ultimately take location".

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

Under UK takeover guidelines, the firms have up until 21 August to either make a company deal or leave.

the yohaig code potential bid comes after William Hill tried to obtain 888 last year in a ₤ 720m offer, however the deal collapsed after 888 declined the bet9ja's welcome offer as too low.

Ever since, rival wagering companies Ladbrokes and Gala Coral have concurred a ₤ 2.3 bn merger which received initial regulator approval in May.

The combined group would make it bigger than William Hill, presently the biggest UK bookmaker based on number of shops.

Irish bookmaker Paddy Power and online operator Betfair likewise consented to join forces last September.

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