The much anticipated takeover offer for William Hill (WMH) from rivals 888 (888) and Rank Group (RNK) was made public on Tuesday, leaving the former's investors and board distinctly underwhelmed. The deal, which would be effected through an all-share merger of 888 and Rank making a cash and shares offer valuing William Hill at 364p a share, or £3.1bn plus debt, was rapidly dismissed by the target's board for "substantially" undervaluing the company.
Now, you would expect William Hill to say that, even if only to elicit a higher offer, but the share price reaction spoke volumes for the mood of investors. Normally in such circumstances, traders would bid up the target's shares, especially if they expected a higher offer to be forthcoming. But the bookie's shares barely budged when the offer was made public and actually dipped 2 per cent to 322p on Wednesday.