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 betting company William Hill has been approached by competing betting companies 888 and Rank Group about a merger.
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William Hill stated it would "listen to and consider" any proposal.

However, it was unclear that a mix of William Hill, 888 and Rank would "deliver superior worth", the company stated, external.
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Online operator 888 and Rank, the UK's biggest gambling establishment chain, said they saw "substantial industrial reasoning in the mix".

William Hill stated the was "highly preliminary", while Rank and 888 said they had not yet made an official deal to the bookmaker's board.

Shares in William Hill increased 4.8%, while 888 shares rose 3.4% and Rank lost 0.5%.
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'Surprise'

The move comes simply days after William Hill's primary executive, James Henderson, was ousted from the UK's biggest betting shop operator following a series of revenue warnings.

Mr Henderson, who took the helm in August 2014, had actually failed to fix problems in the company's having a hard time online organization.

In May, its most current trading upgrade, the firm said, external net profits had actually fallen 11% in its online division in the 17 weeks to 26 April.

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

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

Rank and 888 stated there was "no certainty that any transaction will eventually happen".

Rank's primary executive, Henry Birch, is a former head of William Hill's online division.

Under UK takeover rules, the firms have up until 21 August to either make a company deal or stroll away.

The possible bid follows William Hill tried to get 888 last year in a ₤ 720m deal, however the yohaig code deal collapsed after 888 turned down the deal as too low.
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Ever since, competing betting companies Ladbrokes and Gala Coral have actually concurred a ₤ 2.3 bn merger which received initial regulator approval in May.

The combined group would make it bigger than William Hill, currently the largest UK bookie based upon variety of shops.

Irish bookmaker Paddy Power and online operator Betfair likewise concurred to join forces last September.
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Gambling industry bets on combination

William Hill and 888 end bid talks

Betting merger might depend upon shop sales

20 May 2016
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Paddy Power Betfair to cut 650 jobs

5 April 2016
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