William Hill has said it is not clear that a combination with rivals 888 and Rank would enhance its position after the two firms joined forces with a view to making a bid for the British bookmaker.
888 and Rank said yesterday they were working on a three-way deal to bring together one of the leading online gambling players, Britain's top casino and bingo hall operator and the country's biggest high street bookmaker.
William Hill confirmed it had received a highly preliminary approach but that the consortium did not put forward a proposal on price, timing, terms, form of consideration or transaction structure.
"The Board of William Hill would listen to and consider any proposal which might be forthcoming from the consortium," it said.
"However, it is not clear that a combination of William Hill with 888 and Rank will enhance William Hill's strategic positioning or deliver superior value to William Hill's strategy which is focused on increasing the group's diversification by growing its digital and international businesses."
The market-leading bookmaker, which fired its chief executive last week, failed in a bid to buy 888 last year when it could not agree a price with its major shareholder Israel's Avi Shaked.
Avi and his brother Aaron Shaked own about half of 888 through family trusts, according to Thomson Reuters data.
Since William Hill's failed bid, rivals Ladbrokes and Gala Coral have agreed a £2.3 billion deal, which will knock William Hill off the top spot, while Paddy Power and Betfair agreed to join forces in September.
William Hill said following the preliminary approach it was now considered to be in an "offer period" and would therefore suspend share buybacks.
Shares in William Hill, down 21% so far this year, closed on Friday at 313.6 pence, valuing the business at £2.8 billion.
