Gaming groups 888 and Rank are considering a £3B ($3.9B) joint bid for "struggling rival" William Hill, according to Nick Fletcher of the London GUARDIAN. The pair issued a statement "saying they had formed a consortium for a potential transaction for William Hill." The move "turns the tables on William Hill," which just over a year ago made an unsuccessful £700M bid for 888. The deal collapsed "because the two sides could not agree on a price," with one of 888's Israeli founders reported to be "holding out for a higher offer." 888 and Rank said that "no formal approach had been made," and there was no guarantee of an eventual offer. However, they added, "The consortium sees significant industrial logic in the combination, through consolidation of their complementary online and land-based operations, delivery of substantial revenue and cost synergies and from the anticipated benefits of economies of scale, which will accrue to all shareholders" (GUARDIAN, 7/24). In London, Harrington & Evans reported advisers from investment bank Morgan Stanley, accountancy firm PwC and lawyers from Slaughter & May "are said to be working on the deal." The tie-up between Rank and 888 "is the latest blockbuster deal in Britain’s rapidly consolidating betting business." The wave of deal-making "is being driven by rising taxes and a crackdown on fixed-odds betting terminals," the in-store gambling machines that can take tens of thousands of pounds each week (SUNDAY TIMES, 7/24). REUTERS' Paul Sandle reported a three way tie-up "would be the latest, and potentially biggest," major deal in an industry consolidating in the face of "tighter regulations and rising taxes." William Hill was "quick to embrace Britons' changing gambling habits, such as placing bets online using smartphones and tablets," often "in play" while watching sports like football on TV, but its lead "has vanished as its apps failed to retain punters" (REUTERS, 7/24).
