- Oops!Something went wrong.Please try again later.
(Adds analyst comment, background, shares)
Sept 7 (Reuters) - British gambling group 888 said on Tuesday it was in advanced talks with Caesars Entertainment for a possible acquisition of the international operations of the U.S. company's William Hill business.
The brief statement followed a Times report that said 888 had outbid Apollo for the assets, which became part of Caesars when it took over London-based William Hill in a $4 billion deal earlier this year.
"Such a deal would create a materially larger business, relevant to many more investors, with a period of synergy extraction ahead to offset any negative regulatory changes, particularly in the UK," Peel Hunt analysts wrote in a note.
"We would expect management to make a good case for enhancing the online business and extracting at least marketing value from retail."
Shares of 888, which have surged in value during the pandemic amid a spur in online betting volumes during lockdowns, were up about 2% at 414 pence by 1102 GMT, outperforming the broader midcap index's 0.2% dip.
Caesars Entertainment's acquisition of William Hill was part of a wider consolidation in the gambling industry, with American companies buying out London-listed groups to gain more expertise as the United States opens up to sports betting.
The British firm did not respond to a Reuters request for comment regarding how it would fit William Hill's assets with 888's existing betting platforms, which are exclusively online.
(Reporting by Muvija M in Bengaluru; Editing by Saumyadeb Chakrabarty and Krishna Chandra Eluri)