UK: William Hill rejects revised $4bn 888/Rank merger bid

The latest three-way merger bid for bookmaker William Hill fell flat with shareholders, after the group rejected a revised proposal from 888 Holdings and The Rank Group for a potential combination of the three companies.

In a statement Monday, the board called the bid “highly opportunistic,” mirroring the rejection of last week’s £3.6bn bid.

The board said it continued to believe that a combination of William Hill with 888 and Rank will not enhance its strategic positioning or deliver superior value for shareholders.

The revised proposal equates to around 352p per share, representing a 12% premium, and would mean William Hill shareholders owned 48.8% of the combined group. The previous offer stood at 339p per share.

William Hill said the revised proposal would continue to present “significant risk” for its shareholders due to the highly complicated three-way combination at a very low premium.

“The board continues to believe we have a strong team to deliver superior value to our shareholders and trading at the start of the second half gives us renewed confidence in our stand-alone strategy,” said chairman Gareth Davis.

“This revised proposal continues to substantially undervalue the company and the cash element of the proposal has not changed. Therefore, the Board sees no merit in engaging.”

Last week, analysts raised concern over the £2.2bn debt the proposed group would have to assume to fund the cash element of the deal.

Full Content: Financial Times

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