Rank And 888 Propose Merger With William Hill

A possible three-way merger between UK betting company William Hill (Other OTC: WIMHF - news) , casino giant Rank Group and online operator 888 is on the table.

Rank Group and 888 made their interest in a tie-up over the weekend, whilst William Hill said it "listen to and consider" any proposal.

It comes as William Hill's CEO, James Henderson stepped down last week, after over 30 years with the company, to be replaced by Philip Bowcock.

The bookmaker announced in May that net profits were down 3% in the first quarter and the board expressed dissatisfaction with the firm's stalling online growth under Henderson's helm.

The offer comes at a time when analysts view the bookie's predicament as 'vulnerable', in light of the recent departure of its chief executive, and turnover of senior management.

Jason Holden at Liberium said: "Despite William Hill's recent woes the 888/Rank consortium would be acquiring the number two online and retail bookmaker in the UK with what is still a very strong brand and with a significant opportunity."

If William Hill does agree a merger, it will bring the UK's largest retail bookmaker in line with rivals who have already consolidated.

Last year Betfair and Paddy Power (EUREX: 27913021.EX - news) merged, and Ladbrokes (LSE: LAD.L - news) and Gala Coral are also joining forces, in the face of a difficult market.

Last year, William Hill made an offer to buy 888, but failed to agree a price with a major shareholder.

Rank and 888 have a deadline of 21 August to formally make an offer for William Hill.

Shares (Berlin: DI6.BE - news) in William Hill increased 4.8%, while 888 shares rose 3.4% and Rank lost 0.5% after the trio confirmed a merger could be on the cards (Other OTC: UBGXF - news) .