William Hill and Amaya abandon merger talks

18 October 2016

British bookmaker William Hill and Amaya, owner of the world's greatest online poker organization, have ended talks of a possible ₤ 4.5 bn merger.

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

'Limited reasoning'

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

However, Parvus said the deal had "restricted tactical reasoning" and would "destroy shareholder value".

The FTSE 250 bookmaker is aiming to maintain as much of its close competitors combine. Paddy Power and Betfair have actually combined to produce a FTSE 100 betting firm, while Ladbrokes and Coral are combining to end up being the UK's biggest High Street bookie.

Ladbrokes reported a 12% rise in third-quarter income on Tuesday, enhanced by online development and bad results for fan-favourites Manchester United and Barcelona.

William Hill, which ousted its primary executive in July after a string of earnings warnings, saw off a takeover technique from casino company Rank and online operator 888 two months ago.

Meanwhile, Amaya's shares have fallen 30% in the previous 12 months amid an insider trading investigation into its former president, the threat of a $870m (₤ 710m) fine in Kentucky, and slowing potential customers for online poker.

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