William Hill declines revised deal from Rank and 888
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15 August 2016

Bookmaker William Hill has declined a revised takeover technique from 888 and Rank, saying it still "substantially" underestimates the company.

William Hill stated the brand-new proposition offered its investors an estimated worth of 352p a share, compared with a previous bet9ja's welcome offer of 339p a share.

Rank and 888 declared their view that the deal was "a compelling worth production chance for William Hill".
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But William Hill stated the modified deal was "extremely opportunistic".
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"The board continues to see no merit in engaging with the consortium," the business included.

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

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

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

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

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

"The board continues to think we have a strong group to provide exceptional worth to our investors and trading at the start of the 2nd half provides us renewed confidence in our stand-alone technique."
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Casino and bingo hall operator Rank and online betting group 888 stated that the proposed new combination would develop the UK's biggest multi-channel gambling operator by earnings and revenue.
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They also stated it would lead to expense savings of a minimum of ₤ 100m a year, while more cost savings might potentially be discovered "through positive engagement".

However, William Hill has said the cost savings will not be achieved completely till the end of 2020 and present "substantial danger for William Hill investors".

The president of 888, Itai Frieberger, stated a combined service might "lead innovation in the sector", while Rank primary executive Henry Birch stated the deal made "compelling tactical sense for all three businesses".
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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 country's most significant business in the sector.

The Competition and Markets Authority has actually told the two firms that they should sell 350 to 400 shops in order for the merger to be cleared.

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