Online Israeli gambling company 888 Holdings said discussions over a 720 million pound ($1.1 billion) takeover by Britain's biggest bookmaker, William Hill, had ended after talks broke down over price with a key stakeholder. Shares in 888, which in 2011 saw a planned takeover by Britain's Ladbrokes collapse over pricing, fell 15 percent to 145 pence ($2.23) in early trading on Monday. William Hill shares were up 1.6 percent at 388 pence ($5.96). 888, whose shares had jumped more than 20 percent last week after talks between the two companies were confirmed, said on Monday it had discussed a possible recommended offer from William Hill valued at 200 pence ($3), plus a 3 pence dividend per share. "Due to a significant difference of opinion on value with a key stakeholder, it has not been possible to reach agreement on the terms of a possible offer and the board of the company has agreed with William Hill to terminate discussions," 888 said. Two trusts set up by the Shaked family, one of 888's Israeli founders, each hold 24.34 percent stakes in the firm, with one thought to have wanted 300 pence a share, according to a report in the Times newspaper last week. 888, which also said it had continued to trade in line with expectations, declined to comment beyond its statement. William Hill was not available for comment. Analysts had said 888's strong in-house technology was attractive to William Hill, which uses a number of third-party suppliers. Cost savings and improved exposure to international markets, particularly the United States, were also seen as benefits. More broadly, with tax and regulation increasing across the gambling sector's biggest markets, companies have begun to seek faster growth and more customers through online operations. One of the pioneers of the online gambling industry, 888 was founded in 1997 by businessman Avi Shaked and brothers Shay and Ron Ben-Yitzhak. Shaked, who vied for a Knesset seat with the Labor Party in 2005, currently controls 48.6 percent of the company, while the Ben-Yitzhak family holds 10.5 percent.
