William Hill and Amaya desert merger talks

18 October 2016

British bookie William Hill and Amaya, owner of the world's most significant online poker business, have actually ended talks of a possible ₤ 4.5 bn merger.

William Hill stated it took the yohaig code decision, external after canvassing views from a number of major shareholders.

Last week, its most significant financier, Parvus Asset Management, greatly criticised the tie-up.

Canada's Amaya, external, which owns PokerStars, stated that remaining independent was the very best move for shareholders.

Amaya said: "Discussions have concluded, and Amaya and William Hill have figured out that they will no longer pursue the merger."

'Limited logic'

News of the talks emerged earlier this month, with William Hill saying a merger would produce "a clear worldwide leader across online sports wagering, poker and casino".

However, Parvus said the deal had "minimal strategic reasoning" and would "damage shareholder value".

The FTSE 250 bookie is looking to keep up as many of its close competitors combine. Paddy Power and Betfair have merged to produce a FTSE 100 betting firm, while Ladbrokes and Coral are combining to end up being the UK's most significant High Street bookmaker.

Ladbrokes reported a 12% rise in third-quarter income on Tuesday, increased by online growth and poor outcomes for fan-favourites Manchester United and Barcelona.

William Hill, which ousted its chief executive in July after a string of earnings warnings, saw off a takeover approach from gambling establishment company Rank and online operator 888 two months earlier.

Meanwhile, Amaya's shares have actually fallen 30% in the previous 12 months amid an expert trading investigation into its previous primary executive, the yohaig code threat of a $870m (₤ 710m) fine in Kentucky, and slowing prospects for online poker.

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