William Hill secured an interim injunction to block Ladbrokes-Playtech deal
William Hill has stated that it had secured an interim injunction against Playtech in a bid to guard its legal rights in regards to a joint-venture between the two groups.
The Telegraph disclosed information that this month, Ladbrokes and Playtech was looking for a possible £2.2bn merger, inviting warnings from analysts that William Hill could act to disrupt the talks.
Taking reference of the report of merger talks, William Hill stated that Playtech had recently made contact asking for possible important amendments to the current William Hill Online joint venture agreements.
William Hill owns seventy one percent of the WHO venture, which started in October 2008. Playtech holds twenty nine percent. Under the agreement, William Hill has an option to acquire the software company after four and six years on an independent fair value basis.
The online venture generated in the tune of €30.8m (£26.1m) profits for Playtech last year. William Hill stated that the performance of the joint-venture remained very strong.
William Hill shares declined 4.4 to hit 189.6p, while Playtech declined by 9 at three hundred and forty nine pence.
The terms of injunction are not clear but as per statement made by Credit Suisse analysts, it prohibited Playtech from continuing talks with Ladbrokes while any disagreement with William Hill was outstanding.
The next stage leads to a court hearing within two weeks, wrote the analyst. They see this as a sign that William Hill is hell bent upon for reasserting its authority in negotiations with Playtech, taking it back to the table for discussions, in which it will have additional advantage if the injunction gets maintained.
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