The board of William Hill, Britain’s second-biggest bookmaker, has blocked a £4bn all-share merger with Rank Group, the bingo and casino giant.
The merger was rejected because of the companies’ different ratings on the stock exchange.
William Hill has a low rating compared to Rank, whose share price has been boosted due to persistent bid speculation.
However, there remains a strong possibility talks will be revived.
According to bankers familiar with the negotiations, the future of Deluxe, the troublesome film and media unit of Rank, was not an obstacle to a deal.
A sale of Deluxe is thought to be close.
A merger of Rank and William Hill would create a gaming and betting giant to challenge Cala, which acquired Coral, Britain’s third largest bookmaker, this year.
References: Sunday Times Business 18/12/2005 page 1
