William Hill and Amaya desert merger talks

18 October 2016

British bookmaker William Hill and Amaya, owner of the world's biggest online poker service, 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 significant shareholders.

Last week, its most significant investor, Parvus Asset Management, heavily criticised the tie-up.

Canada's Amaya, external, which owns PokerStars, said that remaining independent was the best relocation for shareholders.

Amaya stated: "Discussions have actually concluded, and Amaya and William Hill have identified 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 produce "a clear global leader throughout online sports betting, poker and gambling establishment".

However, Parvus said the yohaig code deal had "limited tactical logic" and would "damage shareholder worth".

The FTSE 250 bookie is aiming to keep up as a lot of its close rivals combine. Paddy Power and Betfair have merged to develop a FTSE 100 betting company, 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 earnings on Tuesday, improved by online growth and bad results for fan-favourites Manchester United and Barcelona.

William Hill, which ousted its president in July after a string of profit cautions, 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 expert trading investigation into its former president, the danger of a $870m (₤ 710m) fine in Kentucky, and slowing prospects for online poker.

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