Only a week after UK’s biggest bookmaker, poker and casino room William Hill PLC offered $1.14 Billion to takeover 888 poker, the parent company 888 Holdings turned down the proposal. London-based PR firm Hudson Sandler announced yesterday that negotiations between two poker firms have ceased before reaching any mutual agreement.
The public note states, “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.”
One of the key shareholders of 888 Holdings did not agree to sell his shares at the price offered by William Hill. “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”, the note continued.
Shares of 888 Holdings went up by 21 percent on the day when the news of acquisition broke out last week. However, it dropped by 11.58 percent after the official note stating the discontinuation of talks was circulated yesterday.
If rumours are to be believed, one of the founder members of 888 Holdings seeks a minimum of 300 pence per share. William Hill officials negotiated up to a ceiling of 210 pence a share which would cost approximately 750 million pounds ($1.14 billion) in total.
Speaking of the deal cancellation, 888 Holdings Chief Executive Officer Brian Mattingley said, “[888 Holding] is in good health and continues to trade comfortably in line with expectations. The Company will announce its full year results on 24 March 2015 and the Board of the Company looks forward to the future with confidence.”