Last week, the online gambling business was stirred up by the news that William Hill wants to take over its rival 888 Holdings. William Hill, the operating company of William Hill Casino, is the most popular bookmaker in the United Kingdom and obviously it wants to expand.
However, soon after the board of 888 confirmed that William Hill expressed its interest in taking over the company, the media reported that the talks have been ended. According to some information, the reason for the termination of any further discussion on this topic was the price.
William Hill valued 888 at approximately £750 million (€1 billion) and it offered to pay 200 pence plus 3 pence dividend per share. Apparently, the price was not enough for one of the main shareholders in 888; some sources claimed that the investor to reject the offer was the Israeli Shaked family that wanted 300 pence per share.
Both companies gave separate statements about the end of the talks. William Hill pointed out that there has been a significant difference of opinion on value with a key shareholder. On the other hand, Brian Mattingley, 888’s CEO, said that “the company is in good health and continues to trade comfortably in line with expectations.”
888 Holdings, which is owner of 888 Casino, 888 Poker, 888 Sports and 888 Bingo, is expected to announce its full year results on 24th of March and, according to its CEO, is looking forward to the future with confidence.
The talks had a strong impact on the trading market; last week, when 888 confirmed the possible takeover talks, the company’s shares rose for 20%. However, after the today’s news that the negotiations were terminated, the shared noted a sharp fall of 12%. William Hill’s shares today rose for 0.6%.