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| William Hill approached by 888 and Rank for gambling merger | William Hill approached by 888 and Rank for gambling merger |
| (about 7 hours later) | |
| UK betting firm William Hill has been approached by rival gambling companies 888 and Rank Group about a merger. | UK betting firm William Hill has been approached by rival gambling companies 888 and Rank Group about a merger. |
| William Hill said it would "listen to and consider" any proposal. | 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. | 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". | Online operator 888 and Rank, the UK's biggest casino chain, said they saw "significant industrial logic in the combination". |
| William Hill said the approach was "highly preliminary", while Rank and 888 said they had not yet made a formal offer to the bookmaker's board. | William Hill said the approach was "highly preliminary", while Rank and 888 said they had not yet made a formal offer to the bookmaker's board. |
| Shares in William Hill increased 5%, while 888 shares rose 3% and Rank lost 1%. | |
| 'Surprise' | 'Surprise' |
| The move comes just days after William Hill's chief executive, James Henderson, was ousted from the UK's biggest betting shop operator following a series of profit warnings. | The move comes just days after William Hill's chief executive, James Henderson, was ousted from the UK's biggest betting shop operator 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. |
| David Jennings, an analyst at Davy, said the news was "undoubtedly a surprise, given that the combined value of 888 and Rank is £1.7bn". | David Jennings, an analyst at Davy, said the news was "undoubtedly a surprise, given that the combined value of 888 and Rank is £1.7bn". |
| Rank and 888 said there was "no certainty that any transaction will ultimately take place". | Rank and 888 said 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. |