November 02, 2011

William Hill withdraws from Probability talks

Shares in mobile gambling specialist Probability plc have slumped 16 per cent in London this morning after UK bookmaker William Hill confirmed that it does not intend to make an offer for the company.

William Hill was originally required to make an offer for Probability by no later than 5pm on October 17th, or to announce that it does not intend to make an offer.

Last month Probability said that following a joint submission with William Hill, the two companies had been granted an extension until November 14th to reach an agreement, pursuant to Rule 2.6(c) of the City Code on Takeovers and Mergers.

This morning however, William Hill said in a statement to the London Stock Exchange that it does not intend to make an offer for Probability.

Under Rule 2.8 of the Takeover Code, William Hill reserves the right to announce an offer, or participate in an offer, for Probability within the next six months so long as various conditions are met.

These include an agreement or recommendation from the board of Probability, an announcement by or on behalf of a third party of a firm intention to make an offer for Probability or if Probability announces that it has received an approach in relation to a possible offer from a third party.

Finally, William Hill can also act in the event that Probability announces a "whitewash" proposal or a reverse takeover or if there is a material change of circumstances.

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