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 proposition.

However, it was not clear that a combination of William Hill, 888 and Rank would "deliver superior worth", the business said, external.
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Online operator 888 and Rank, the UK's most significant gambling establishment chain, said they saw "considerable industrial reasoning in the combination".

William Hill stated the method was "highly preliminary", while Rank and 888 said they had actually not yet made an official deal to the bookmaker's board.
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Shares in William Hill increased 4.8%, while 888 shares increased 3.4% and Rank lost 0.5%.

'Surprise'

The relocation comes simply days after William Hill's primary executive, James Henderson, was ousted from the UK's most significant wagering store operator following a series of profit cautions.

Mr Henderson, who took the helm in August 2014, had stopped working to fix issues in the company's having a hard time online company.

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

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

David Jennings, an analyst at Davy, said the news was "undoubtedly a surprise, given that the combined value of 888 and Rank is ₤ 1.7 bn".

Rank and 888 stated there was "no certainty that any transaction will ultimately occur".

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

Under UK takeover rules, the firms have until 21 August to either make a company bet9ja's welcome offer or walk away.
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The prospective quote follows William Hill tried to obtain 888 last year in a ₤ 720m deal, however the offer collapsed after 888 declined the offer as too low.
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Since then, rival betting companies Ladbrokes and Gala Coral have concurred a ₤ 2.3 bn merger which got preliminary regulator approval in May.

The combined group would make it larger than William Hill, presently the largest UK bookie based upon number of shops.

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

Gambling market bets on consolidation
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William Hill and 888 end quote talks
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Betting merger may depend upon shop sales

20 May 2016
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