William Hill snubs take-over approach from 888 and Rank Group

William Hill dashed hopes of a three-way tie-up with rivals 888 Holdings and The Rank Group, saying the proposed premium was too low and the risks for its own shareholders surrounding the suggested financial stucture for the transaction too high.

The takeover offer valued William Hill at 364p per share, based on the closing prices of 888 and Rank on 5 August, the bookmaker said in a statement.

Furthermore, the Board did not believe a three-way combination would enhance "William Hill's strategic positioning or deliver superior value for shareholders compared against William Hill's strategy, which is focused on increasing the Group's diversification by growing its digital and international businesses."

As well, the Board considered the approximately £2.2bn of gearing necessary to finance the cash element of the bid and refinance existing debt within the three companies to be substantial.

Shares in William Hill finished the session higher by 0.49% to 329.0p.