William Hill delay in approving its £2.9bn sale to US casino Caesars attracts hedge funds
- City sources said hedge funds betting on takeover deals
- Melqart, Sand Grove and TIG are paying £2.75 a share – more than Caesars offer
Hedge funds were buying William Hill shares as the delay in approving its £2.9billion sale to a US casino giant ran to a third week.
City sources said hedge funds betting on takeover deals, such as Melqart, Sand Grove and TIG, were paying £2.75 a share – more than Caesars has offered for the FTSE 250-listed bookmaker.
Last year, William Hill’s board recommended a £2.72-a-share offer from Caesars to shareholders after US private equity giant Apollo made a rival offer.
It has been nearly three weeks since William Hill said a judgment was ‘awaited’
Usually, a judge approves the takeover of a UK publicly listed company days after the court hearing.
But two hedge funds have objected, saying they weren’t given enough information by William Hill’s board at the time of the shareholder vote.
It has been nearly three weeks since William Hill said a judgment was ‘awaited’.
Analysts have said a market rally since the deal was struck means the shares may be worth £4.90 if it is scrapped.
A William Hill spokesman declined to comment.