It has long been considered that Rank Group would be ripe for takeover once it had divested itself of its Deluxe film and media division. Yesterday the Sunday Times reported that betting shop operator William Hill had approached Rank Group about a merger but that the all-share deal had later been called off after it was presented to the William Hill board. Confirmation is now awaited.

The rejection of the plan by the William Hill board is believed to have stemmed from a difference in share valuation, which would make Rank overpriced for a straight one for one share swap even though the two companies have similar stock market capitalization. It is not thought that the Rank board was asked to consider the merger proposal.

So far, neither company has commented on the ending of merger talks. Rank is in the process of selling Deluxe for around US$747 million and a merger of the two companies would have brought together the William Hill chain of bookmakers with Rank’s gaming division that includes Grosvenor Casinos, Mecca Bingos and Blue Square online betting. (E-12.19.05)

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