William Hill rejects $4.2 billion offer from 888, Rank Group

[The Buzz]

Saying the offer "substantially undervalues" the company, William Hill rejected a 3.2 billion-pound ($4.2 billion) cash-and-stock offer from 888 Holdings and Rank Group in a deal that "would take recent industry consolidation to a new level."

“This conditional proposal substantially undervalues William Hill, is highly opportunistic and does not reflect the inherent value of the business,” Chairman Gareth Davis said in the statement. The “highly complicated” proposal involves “substantial risk” for shareholders, as the merged company would be saddled with 2.2 billion pounds of debt to fund the cash part of the deal, it said . . . The offer heaps more pressure on William Hill, which last month ousted Chief Executive Officer James Henderson as it struggles to keep pace in the fast-growing world of online betting. The bookmaker launched a new web platform and mobile application last year, though ran into difficulties that led to a slowdown in betting growth. It cut profit guidance in March.

Here's the story from Bloomberg:http://www.bloomberg.com/news/articl...888-rank-group

[MMM]

Amazing. Somehow it seems that 888 will never be able to acquire or merge. Will hill market cup at current price is 2.8B and yet they refused 4.2B. Pretty much similar rate that 888 refused themselves about a year ago.

[ocreditor]

Wow... it's the longest foreplay I've ever seen..I think they are doing a mistake, they should accept this offer

[Jan]

I think it's a mistake too, that's a very generous offer considering the current stock price.

[TheGooner]

Wow... it's the longest foreplay I've ever seen..I think they are doing a mistake, they should accept this offer

No ... not really. It's called negotiation.
888.con have shown their hand and it is clear that they really, really, really want the legitimacy that comes with a bricks and mortar brand.

They'll be back with an improved offer.