William Hill Online Secures Injunction Against Playtech
William Hill Online just received a court sanction against Playtech its joint venture partner. The company aims to safeguard its rights subsequent rumours that the software supplier had possible amalgamation talks with competitor Ladbrokes. In a statement released earlier today Britain’s principal bookmaker said it “had to secure a temporary ban against Playtech to ensure that its legal rights under the William Hill Online joint venture agreements were honoured”.
“Playtech just initiated talks with William Hill looking for possible amendments to its current William Hill Online joint venture agreements. The press speculated that there were discussions going on between Playtech and Ladbrokes plc,” the statement further pointed out.
According to the source the injunction effectively prohibits Playtech from selling any of its casino software to Ladbrokes and prevents it from streamlining its original joint venture agreement that could facilitate them to work with its main UK competitor (Ladbrokes). The source said that Playtech is aware of the injunction and that it would not influence the joint venture association.
According to the Daily Telegraph on the 9th of February Ladbrokes entered into “initial discussions” with Playtech over a probable £2.2bn amalgamation; conversely both parties denied this vehemently.
Playtech concluded a five year contract In October 2008 with William Hill to furnish the UK bookmaker with internet casino and poker games. In William Hill Online Playtech has a 29% stake. Ralph Topping chief executive at the time said its business venture with Playtech was a “watershed business deal”.
On Friday William Hill will publicize its yearly results for the year ended on the 28th of December 2010. Chief executive Henry Birch will provide further details pertaining to the injunction.
Issued on the 19th of January the trading statement stated that William Hill Online’s joint venture is still on track and there are no reasons for concern. The statement concluded, “William Hill is still very much committed to the success of the William Hill Online joint venture”.
A statement has not been released by Playtech as yet.[addtoany]