Issuing a combined statement on Sunday, Rank and 888 governances detailed that although the consortium was studying its William Hill approach, at present there was no guarantee of a formal offer.
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The brothers have built one of Britain’s biggest online gambling groups, offering sports betting as well online bingo and casino games.
As first reported by the Sunday Times, Rank and 888 are in “advanced talks” regarding a merger that would create a £2b firm.
Rank’s chief executive, Henry Birch, is a former head of William Hill’s online division.
Several news outlets are reporting that The Rank Group and 888 Holdings are considering a merger of sorts to consolidate their resources, coming together to bid on the struggling William Hill Company. Rank is Britain’s biggest operator of casinos under the Grosvenor brand and bingo halls under the Mecca brand.
The pair issued a statement saying they had formed a consortium for a potential transaction for William Hill, which last week ousted its chief executive James Henderson after its failure to capitalise on the growing online betting market.
Shares (Berlin: DI6.BE – news) in William Hill had declined 31 percent in the 12 months before Henderson was sacked, hitting a three-year low in June and valuing its equity at about 2.75 billion pounds.
In a further industry twist, this morning it has been reported that Rank and 888 are considering a joint £3 billion takeover for William Hill. Last week the William Hill CEO was sacked, and the company lost 21 percent of its value since the beginning of the year, while 888 has gone up 25 percent.
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British bookmakers Ladbrokes (LAD.L) and Gala Coral are awaiting clearance for 2.3 billion pound deal, while Paddy Power PPB.I and Betfair agreed to join forces in September.
