William Hill fails in 888 buyout attempt
Bookmaker William Hill has been frustrated in its attempt to buy online gaming group 888 Holdings for a price of more than £700 million.
Casino-on-Net firm 888 confirmed last week that it had received an approach from Hills and has now said that the board together with the main shareholders in the company held talks with the group over a possible offer, but those talks are now over.
The move follows a "significant difference of opinion on value with a key stakeholder".
The proposal would have valued 888, whose other brands include Pacific Poker, 888ladies bingo and 888sport, at 200p per share or £709 million, with a dividend adding an extra £10.6 million sweetener for shareholders.
The disclosure of talks last Tuesday – amid speculation of a 210p price – had sent shares as much as 28% higher though some of the fizz had been lost by the end of the session. Shares were 17% lower after the announcement.
Reports last week claimed that a founding family of the online group was creating a potential stumbling block by holding out for as much as 300p a share.
888 said: "Due to a significant difference of opinion on value with a key stakeholder, it has not been possible to reach agreement on the terms of a possible offer and the board of the company has agreed with William Hill to terminate discussions."
