Online gaming operator 888 Holdings has terminated £744m ($1.1b) takeover discussions with bookmaker William Hill after talks broke down over price with a key stakeholder.
888 said that the board of the company and the representatives of the principal shareholder trusts, together with their respective advisers, have had a number of discussions with William Hill and its advisers concerning a possible offer.
“Due to a significant difference of opinion on value with a key stakeholder, it has not been possible to reach agreement on the terms of a possible offer and the Board of the Company has agreed with William Hill to terminate discussions, said 888.
888 announced last week that Hills made an offer of 210p per share, a total of £744m followed by a statement saying that it had “received an approach regarding a possible offer,” but there was no guarantee that “any firm offer will be made nor as to the terms on which any firm offer might be forthcoming.”
Shares in 888 fell 16% at 142.75p on Monday, having soared more than 25% before closing to 18% at 171.5p last week after it was revealed to be in talks with William Hill.
“The company is in good health and continues to trade comfortably in line with expectations,” said 888 CEO Brian Mattingley. “The company will announce its full year results on 24 March 2015 and the board of the company looks forward to the future with confidence.”
Shares in William Hill Plc rose by nearly 0.5% to 383.90p on Monday and the company is due to report full-year results on February 27.
