The last couple of days have been pretty eventful for the two gaming giants William Hill and 888. The companies entered into talks concerning an eventual recommended offer from William Hill, which was estimated to 200 pence plus a 3-pence dividend per share.
Meanwhile, the shares of 888 increased by 20% in only one week. People familiar with the matter supposed that the discussion with the most prominent UK bookmaker is the main reason for the rapid increase.
However, it seems like the latest information will be pretty disappointing for shareholders. The two parties could not reach an agreement and they pointed the “significant difference of opinion” as the main reason for the unsuccessful attempts for closing the deal.
Mere hours ago, a representative of 888 announced that given the current circumstances, it was not possible for an agreement to be reached so both companies settled around the decision of terminating the discussions.
People with knowledge on the matter commented that the Shaked family, which is a key shareholder in 888, was discontent with the price tag and the talks were likely to continue provided that the price was approximately 300 pence per share.
It was said in a special statement released to give precise information about the terminated deal that after several discussions between 888 and William Hill and their advisers, the final decision was the talks to be ended due to the “ difference of opinion on value with a key stakeholder”.
In point of fact, such an outcome was not really surprising. As previously reported, the price tag was believed to be the setback which is most difficult to overcome.
Soon after the official statement about the discussion termination was publicly revealed, the shares of 888 fall to 143.5 pence, while the shares of William Hill marked a slight increase.
If the deal had been signed, William Hill would have received an online gambling platform, developed in accordance with the latest technological standards. The deal was estimated to cost £700 million.
According to analysts, the in-house technology of 888 was found really attractive by William Hill’s executives. The bookmaker is currently using the services of third-party suppliers. In addition, William Hill would have been enabled to enter foreign gambling markets.
What made the prominent companies adopt different approaches for attracting new customers and entering big markets was their desire to compensate for the losses caused by the increased tax rates.
