Hills merger plans blasted by major shareholder

William Hill's hopes of a £5 billion merger with Canadian online gambling company Amaya have been dealt a serious blow with the news that the bookmaker's largest shareholder opposes the deal.

Hedge fund Parvus Asset Management, which has a 14.3 per cent stake in the company, said in an open letter to the Hills board that the proposal had "limited strategic logic and would destroy shareholder value", and suggested they should consider other options including a sale of the company.

Hills shares rose by 14.40p to close at 313.40p on Friday as a result of the news. The bookmaker, which was said to be canvasing the opinion of other shareholders, said they would not press on with a deal unless it was in shareholders' interests.