by Renee Israel
William Hill, the UK bookmaker, has pulled out of negotiations with
Gibraltar-based Probability Plc, for a takeover deal. William Hill has become
the latest bookie to walk away from such talks, only weeks after negotiations
between Ladbrokes and Sportingbet and 888 fell apart.
William Hill was originally required to make an offer or withdraw their
interest in the mobile gaming company by 5pm on October 17, but following a
joint submission from the companies, the date was extended to November 14.
William Hill has already announced that they are withdrawing their interest
in the Probability deal.
William Hill gave no explanation for the breakdown in negotiations, but
speculators suggest that Playtech, who holds a 21 percent share in the online
branch of William Hill argued that a deal would hurt its interests.
Online gaming has been on the rise over the past few years, particularly with
the improved technology and increased accessibility of mobile gambling through
smartphones and tablet devices.
William Hill Striving to Increase Online Presence
William Hill and Ladbrokes are rivals battling to increase their presence in
the market. Many of the big names in the online gambling industry see
consolidation as the surest way to increase their online presence and this
explains the latest spat of takeover talks with online gaming partners.
William Hill already offers online casino, online poker and online bingo.
According to Nick Batram, an analyst at peel Hunt, "The deal with Probability
was interesting, but it was never going to be a game changer for William Hill."
"It already has a good mobile phone offering, particularly on sports betting,
and it has got the resources to drive forward its own mobile presence," he
continued.
After William Hill made the announcement of the end of the Probability deal,
William Hill shares increased slight, while Probability Plc shares dropped by 16
percent.
While the £17 million takeover talks have been scrapped, William Hill still
has the entitlement to make an offer or to take part in negotiations for an
offer with Probability if it meets certain requirements, as set out under Rule
28 of the Takeover Code.
In order to be entitled to make an offer, there must be a
recommendation or agreement from the board of Probability or the disclosure of
an offer for Probability from a third party or an announcement from Probability
that an offer has been received from a third party. This entitlement is valid
for six months.
