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

1 William Hill Rejects Revised Offer from Rank And 888

William Hill turns down revised deal 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 "substantially" underestimates the business.

William Hill said the new proposal offered its shareholders an estimated worth of 352p a share, compared to a previous deal of 339p a share.
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Rank and 888 reaffirmed their view that the offer was "an engaging worth production opportunity for William Hill".

But William Hill said the revised deal was "extremely opportunistic".

"The board continues to see no benefit in engaging with the consortium," the yohaig code company added.

The modified takeover proposition would see William Hill shareholders receive 199p in money and 0.86 of shares in BidCo - the business being formed by 888 and Rank to buy William Hill - for each share they own.

William Hill investors would end up with 48.8% of the combined group.

Under the previous approach, William Hill were used 199p in cash and 0.725 BidCo shares, leaving financiers with 44.6% of the combined group.

'Substantial danger'
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"this promotion code revised proposition continues to considerably undervalue the business and the money element of the proposal has not altered. Therefore, the board sees no merit in engaging," stated William Hill's chairman, Gareth Davis.

"As we have said before, this promotion code is extremely opportunistic and complicated and does not enhance the tactical positioning of William Hill.

"The board continues to think we have a strong team to provide exceptional value to our shareholders and trading at the start of the 2nd half offers us restored self-confidence in our stand-alone technique."
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Casino and bingo hall operator Rank and online gambling group 888 stated that the proposed brand-new combination would develop the UK's largest multi-channel gambling operator by income and revenue.
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They also said it would lead to expense savings of at least ₤ 100m a year, while more cost savings might potentially be discovered "through constructive engagement".
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However, William Hill has stated the cost savings will not be accomplished completely till completion of 2020 and pose "significant threat for William Hill investors".

The primary executive of 888, Itai Frieberger, stated a combined company could "lead development in the sector", while Rank president Henry Birch said the deal made "compelling strategic sense for all 3 businesses".
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The UK's second and third-largest retail bookies, Ladbrokes and Gala Coral, are presently continuing with their ₤ 2.3 bn merger, which will see them leapfrog over William Hill to become the country's greatest business in the sector.

the yohaig code Competition and Markets Authority has actually informed the two firms that they should sell 350 to 400 stores in order for the merger to be cleared.

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