William Hill and GVC Holdings have confirmed they are in the preliminary stages of considering a possible joint offer for Sportingbet.
It is thought that any possible offer would be structured so that William Hill would acquire the Australian and other locally licensed businesses of Sportingbet, and GVC would acquire the remaining parts of the Sportingbet business.
Any offer would be substantially in cash with an element of GVC paper. William Hill intends that the businesses acquired would be a subsidiary of William Hill and not its online arm.
Although Sportingbet has confirmed that a formal approach has not been received by the board, shares in the company jumped 16.6 per cent yesterday following the statement from William Hill and GVC.
A firm intention to make an offer, or an announcement that it does not intend to make an offer, must be made by William Hill and GVC no later than 5pm on October 16 unless a deadline is agreed.
