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William Hill receives gambling merger bid from 888 and Rank | |
(about 13 hours later) | |
UK betting firm William Hill has received a merger offer from rival gambling companies 888 and Rank Group. | |
William Hill said it would "listen to and consider" any proposal. | |
However, it was not clear that a combination of William Hill, 888 and Rank would "deliver superior value", the company said. | |
Online operator 888 and Rank, the UK's biggest casino chain, said they saw "significant industrial logic in the combination". | |
The move comes just days after William Hill's chief executive, James Henderson, was ousted from the bookmaker following a series of profit warnings. | |
Mr Henderson, who took the helm in August 2014, had failed to resolve problems in the firm's struggling online business. | Mr Henderson, who took the helm in August 2014, had failed to resolve problems in the firm's struggling online business. |
In May, its most recent trading update, the firm said net revenues had fallen 11% in its online division in the 17 weeks to 26 April. | In May, its most recent trading update, the firm said net revenues had fallen 11% in its online division in the 17 weeks to 26 April. |
William Hill's shares have dropped 21% since the start of the year, valuing the former FTSE 100 firm at £2.7bn. | William Hill's shares have dropped 21% since the start of the year, valuing the former FTSE 100 firm at £2.7bn. |
Rank and 888 said they had not yet made a formal approach to William Hill's board and added there was "no certainty that any transaction will ultimately take place". | |
Rank's chief executive, Henry Birch, is a former head of William Hill's online division. | Rank's chief executive, Henry Birch, is a former head of William Hill's online division. |
Under UK takeover rules, the firms have until 21 August to either make a firm offer or walk away. | Under UK takeover rules, the firms have until 21 August to either make a firm offer or walk away. |
The potential bid comes after William Hill tried to acquire 888 last year in a £720m offer, but the deal collapsed after 888 rejected the offer as too low. | The potential bid comes after William Hill tried to acquire 888 last year in a £720m offer, but the deal collapsed after 888 rejected the offer as too low. |
Since then, rival betting firms Ladbrokes and Gala Coral have agreed a £2.3bn merger which received preliminary regulator approval in May. | Since then, rival betting firms Ladbrokes and Gala Coral have agreed a £2.3bn merger which received preliminary regulator approval in May. |
The combined group would make it bigger than William Hill, currently the largest UK bookmaker based on number of shops. | The 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 also agreed to join forces last September. | Irish bookmaker Paddy Power and online operator Betfair also agreed to join forces last September. |