Brokers: Agreed bid for William Hill is a rank outsider 

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The odds are against a deal being agreed for the acquisition of bookie William Hill PLC (LON:WMH), according to Investec.

The broker reckons the robust nature of the rejection statement means that the chances of suitors 888 Holdings PLC (LON:888) and The Rank Group PLC (LON:RNK) winning round the board of William Hill to the idea of a three-way merger are “slim to none”.

Investec has a ‘reduce’ recommendation on the bookie’s shares and is sticking with its 286p target price, arguing that the bidders would find it difficult to fund a higher price than the 352p offer that is currently on the table.

“We believe William Hill is now ‘in play’, and may attract attention from other possible suitors. If no new bid arises before 21st August, there is an argument that William Hill should trade within the range of its pre-bid speculation value – between 275.1p and 313.6p (20th July-22nd July),” suggested analyst Alistair Ross.

Source: proactiveinvestors

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