Published on 18 February 2015 by Rhi
Last week we wrote about the takeover talks between William Hill and 888 that saw 888 valued at almost €1 billion, but today we can reveal that the talks are over and they wont be moving forward with the sale. Since the confirmation that the talks are now off the table, 888’s share price fell a whopping 16% (after it’s 20% increase following last weeks news), whilst William Hill was up by 6p.
The exact details about the collapse of talks is currently unknown, however it has been alleged that there was a ‘significant difference of opinion’ mainly around a key 888 shareholder. Without their consent, the talks could not go ahead and it seems that no resolution could be found. The word is that the significant difference was regarding the proposed price and valuation as they key shareholder believes that they can get a higher offer and are holding out for this.
“The Board of the company and the representatives of the principal shareholder trusts, together with their respective advisers, have had a number of discussions with William Hill and its advisers concerning a possible recommended offer, valued at 200 pence plus a 3 pence dividend per share.
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.”
– Statement from 888 Holding
All will continue as usual at 888 now that the talks are over, however it’s clear that they are in the market to be bought and so it could be that another company comes forward with an offer now that there is a clearer picture of the kind of offer they are expecting.