888 and Rank to Raise Bid?
Published on by Andrew Mills
888 Holdings and Rank Group saw an offer to buy bookmaker William Hill for 364p a share, a 16% premium, unceremoniously refused, with Hill chairman Gareth Davis calling the offer “laughable” and “highly opportunistic.”Davis added: “Quite frankly I think shareholders should flog me if I had discussions on the basis of this offer,” in an interview with the Telegraph.
Rumours
Over the weekend, several media outlets have suggested comments by executives from 888 and Rank seem to point to a determination to continue negotiation with William Hill and a willingness to raise the bid if necessary.However, 888 boss Ital Freiberger made it clear that there was a limit to how far they were willing to go, telling the Telegraph:”We’re not going to pay any price to get it done and at some point we will have to walk away.”CEO of Rank Group, Henry Birch, appears to agree with Freiberger, stating that if the deal does not work out, there is no reason why 888 and Rank cannot merge in the wake of another failed bid for Hill.
A week left
Under stock exchange Takeover Panel rules, 888 and Rank have until the end of the week make a firm deal for William Hill, if they do not do this, they must walk away.It is, however, possible to be granted an extension if it appears that an agreement is likely at a later date.Gareth Davis has made it clear that although they have refused the previous offer, William Hill would be willing to negotiate, but:”It would have to take a substantially bigger offer, and a bigger premium, and a bigger pay-off for the William Hill shareholders”.With Davis also hinting that there may be a rival bid for William Hill coming from CVC, it appears that this drama is far from over.