⁍ Caesars is in advanced talks to buy William Hill WMH.L in a deal that would value the British bookmaker at 2.9 billion pounds ($3.7 billion)
Caesar is considering offering 272 pence per share and William Hill’s board was inclined to recommend such an offer to shareholders.

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⁍ William Hill shares on Friday surged to a two-year high above 312 pence.

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– Caesars Entertainment is in talks to buy Britain’s William Hill for $3.7 billion in a deal that would give the casino operator control of a quickly expanding US sports-betting and online business. Caesars was considering offering 272 pence per share and William Hill’s board was inclined to recommend such an offer to shareholders, the companies said on Monday. William Hill shares on Friday surged to a two-year high above 312 pence after it said it had received separate offers from Caesars and buyout group Apollo. They were last at 275 pence, suggesting that even if Apollo counters, investors now expect the price to be far lower. Caesars, which first approached William Hill on Sept. 1, said its offer price included an almost 60% premium over the company’s share price that day and highlighted the risk of taking on a US business still in its infancy. The company said it intends to find suitable partners or owners for William Hill’s non-US businesses, including more than 1,500 UK betting shops. Caesars could strike a separate deal to flip the UK assets to Apollo, two sources familiar with the matter said, or if that failed, launch an auction process targeting both financial and corporate bidders. Apollo declined to comment. Caesars only holds 20% of its US joint venture with William Hill but the business is built on a presence in Caesars’ casinos and its brand name, which the casino owner said it would have the right to terminate in the event of an Apollo buyout. The bid significantly undervalues the company but there seems limited scope for bid competition due to the joint venture and the backing of William Hill’s board.