william-hill-rejects-revised-offer-from-rank-and-888

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William Hill turns down revised offer from Rank and 888
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15 August 2016
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Bookmaker William Hill has turned down a modified takeover technique from 888 and Rank, stating it still "considerably" undervalues the business.

William Hill said the brand-new proposition offered its shareholders an estimated value of 352p a share, compared with a previous offer of 339p a share.

Rank and 888 reaffirmed their view that the offer was "a compelling worth creation chance for William Hill".

But William Hill stated the revised offer was "highly opportunistic".
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"The board continues to see no merit in engaging with the yohaig code consortium," the company added.
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The revised takeover proposition would see William Hill investors receive 199p in money and 0.86 of shares in BidCo - the yohaig code company being formed by 888 and Rank to purchase William Hill - for each share they own.
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William Hill shareholders would wind up with 48.8% of the combined group.

Under the previous method, William Hill shareholders were provided 199p in cash and 0.725 BidCo shares, leaving investors with 44.6% of the combined group.

'Substantial danger'

"This revised proposition continues to considerably underestimate the company and the money aspect of the proposal has not altered. Therefore, the board sees no benefit in interesting," said William Hill's chairman, Gareth Davis.

"As we have stated before, this is highly opportunistic and complex and does not improve the strategic positioning of William Hill.

"The board continues to believe we have a strong group to provide superior value to our shareholders and trading at the start of the 2nd half provides us restored self-confidence in our stand-alone method."

Casino and bingo hall operator Rank and online betting group 888 said that the proposed brand-new mix would develop the UK's largest multi-channel gaming operator by revenue and revenue.

They likewise said it would lead to expense savings of at least ₤ 100m a year, while more savings might possibly be discovered "through useful engagement".

However, William Hill has said the savings will not be achieved completely up until the end of 2020 and position "significant danger for investors".

The president of 888, Itai Frieberger, said a combined business could "lead innovation in the sector", while Rank chief executive Henry Birch stated the deal made "compelling tactical sense for all three services".

The UK's 2nd and third-largest retail bookies, Ladbrokes and Gala Coral, are currently proceeding with their ₤ 2.3 bn merger, which will see them leapfrog over William Hill to end up being the nation's greatest company in the sector.

The Competition and Markets Authority has told the 2 companies that they must bet9ja's welcome offer 350 to 400 stores in order for the merger to be cleared.
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William Hill rejects Rank and 888's quote
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