William Hill Plc (LON:WMH) has backed out of merger talks with Pokerstars owner Amaya Inc (TSE:AYA) following consultations with its major shareholders.
The proposed 5bn merger was last week condemned by Parvus Asset Management, a 14% shareholder in William Hill, which in a scathing open letter said the company should be sold instead.
Withdrawal from the merger process is the latest twist in William Hill’s corporate saga, following its rejection of the prior takeover offer from 888 Holdings PLC (LON:888) and bingo firm Rank Group PLC (LON:RNK).
William Hill this morning told investors it would continue to focus on four strategic priorities set out earlier this year by interim chief executive Philip Bowcock – they areas of focus are online, technology, efficiencies and international.
It said that trading has continued to be positive in the second half of 2016, and it currently expects operating profit at the top end of guidance, a range of £260-280mln.
William Hill said it will now resume a share buy-back programme, which was suspended in July, and it noted that its next trading update (for the period ending October 25) is due on November 14.