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William Hill Rejects Acquisition Bid by Rank and 888

UK betting giant William Hill has rejected a takeover bid by rival betting groups the Rank Group and 888 Holdings, saying that the £3.16 billion offer is "substantially undervalued".

The bid was rejected, but 888 and Rank are maintaining their intent to purchase the retail and online betting firm, saying that their offer is fair and provides shareholders a unique opportunity. If the groups were to merge, the comany would be the largest multi-faceted UK gaming company in terms of revenues, and the third largest online entity in the UK.

Speaking about his company's rejection of the deal, William Hill Chairman Gareth Davis said, "In addition, as we have said before, this proposal is highly opportunistic, complex and poses significant risk for our shareholders."

UK betting firms have been quick to merge in the wake of the country's point of consumption tax, which has been put into place, as Paddy Power and Betfair, as well as Bwin and GVC Holdings joined forces in multi-billion pound mergers.

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bgsharpe
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18 August 2016 - 8:41pm
#1

As we know there is a tendency of globalization in the business and not only in the online gambling sector so I think 888 will sooner or later acquire Will Hill or there will be some kind of a merge but this would become in real monster sportsbooking company.

caactmyname
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19 August 2016 - 8:22pm
#2
sharpe wrote:

As we know there is a tendency of globalization in the business and not only in the online gambling sector so I think 888 will sooner or later acquire Will Hill or there will be some kind of a merge but this would become in real monster sportsbooking company.

Sooner or later, Hill will falter and but until that time comes, I bet that 888 would have to still go with a much greater amount.

From their annual report, 2015's net revenue 1.6 billion pounds, more than 50% of the bid.

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bgsharpe
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19 August 2016 - 9:34pm
#3

I agree with you mate, there's have to be a much improved bid if 888 wants to acquire a bookmaker of that calibre, the numbers you mentioned there really says it all.

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caactmyname
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19 August 2016 - 11:21pm
#4
sharpe wrote:

I agree with you mate, there's have to be a much improved bid if 888 wants to acquire a bookmaker of that calibre, the numbers you mentioned there really says it all.

Although I can't formulate a price for all the factors, I'd think that 888 would have to offer at least triple or quadruple their revenue (of either this year when it comes up or the previous) to provide enough of an incentive. That would probably add enough insurance so that the venture would be profitable enough. The thing is, the future holds mystery - perhaps more and more people will turn to online gambling instead of brick & mortar casinos and continuing to invest would be the wisest option?

bgsharpe
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21 August 2016 - 6:38pm
#5

Yes no doubt the revenue of the leading online casinos and sportsbooks will continue to grow in the next years, but there is many countries and areas when Will Hill is not available at the moment and if they enters these markets they would be even larger company, so the possibilities for enlargement are huge and that have to make them even more expensive I think.

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