Analysts Opine Will Hill Should Buy Off Playtech Share in WHO

Referring to William Hill plc's option to buy out the 29 percent interest held by Playtech plc in the William Hill Online venture, Panmure Gordon analyst Simon French sent a note to investors opining that the company should exploit the option. Apparently, Playtech's share of the business was estimated by JP Morgan, Deutsche Bank and UBS to worth some $566.1 million, and it is stated in the note that William Hill is considering a retail bond offering to raise around $590.8 million to buy Playtech out of the business by the end of November. According to French, "Playtech has the option to take up to 10 percent of William Hill shares as part of the consideration [in a buy-out of its WHO interest]. Given Playtech's difficulty in spending the funds it raised in November 2011 that could yet prove to be an appealing option." He also assessed that such a purchase could increase WHO profits by circa 3 percent, adding that the buy is highly recommendable. The option was also referred to in the company's recent financial reports which noted: "Our chairman and chief executive continue to meet regularly with their counterparts at Playtech. Discussions have been amicable and continue."