UK bookmaker William Hill is in the midst of a potentially major dispute with its largest shareholder over a proposed merger with online poker behemoth Amaya.
The sports betting giant announced last week that it was in discussions with Amaya – owner of PokerStars – about joining forces in what would become one of the biggest online betting companies in the world.
But Parvus Investment Management, which owns a 14.3 percent stake in William Hill, issued its objections via an open letter in which it questioned the logic of joining forces with a company it said had “limited strategic logic.”
“We strongly encourage that the board and management stop wasting valuable time and shareholder resources pursuing this value-destroying deal,” said the letter, which was signed by Parvus co-founders Mads Eg Gensmann and Edoardo Mercadante.
William Hill has responded by saying it will push ahead with merger discussions unless other significant shareholders express similar concerns.
Amaya made international headlines in 2014 when it forked out US$4.9 billion to acquire both PokerStars and Full Tilt, but two years later the company’s value has plummeted to just US$2.56 billion.
