The talks between 888 Holding plc (LSE:888) and William Hill plc have not matured into a deal, and so there will be no merger between the two companies, 888 has announced to the London Stock Exchange.
Shares in online gambling company 888, which shot up about 20% last week in response to reports of negotiations between the two companies, fell about 15% at the opening of trading on the London Stock Exchange.
"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," 888 said.
It was reported last week that William Hill was negotiating to buy Israeli company 888 for 750 million pounds. William Hill is the largest gambling company in the UK.
According to Reuters, citing a report in "The Times", the deal collapsed because the Shaked family, which controls 888 together with the Ben-Yitzhak family, wanted more than 300 pence per share, whereas William Hill offered 210 pence.
In recent months, there have been widespread rumors that William Hill would buy Bwin.Party. Other potential buyers whose names have arisen in the UK are Teddy Sagi's Playtech Cyprus Ltd. (LSE:PTEC) and Amaya Gaming.
Published by Globes [online], Israel business news - www.globes-online.com - on February 16, 2015
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