Just 6 days ago, 888 Holdings shares had surged 20% due to The Times initial report that William Hill would be taking over the company. Today, UK-listed 888 Holdings confirmed to the market that those talks have ended as 888 rejected William Hill’s offer of 200 pence per share plus three pence dividend, which valued the operator around £719.5m.
“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,” this morning’s statement read.
“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,” it added.
The primary reason for the deal to fall through is likely due to a major 888 shareholder from Israel, thought to be from the Shaked family, disagreeing over the value of the company and seeking an offer more in the 300 pence per share range.
888 shares have since fallen 16.84% to 142.00 per share upon news that William Hill and 888 could not come to an agreement on the value of the company.
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