888 Holdings surges as investor group FS Gaming builds 6.6% stake

(Sharecast News) - William Hill owner 888 Holdings surged on Wednesday after it emerged that investor group FS Gaming Investments has built up a 6.6% stake in the company. The stake was disclosed in a filing after the market close on Tuesday and the investor group includes Lee Feldman, the former chairman of GVC (now Entain), and former chief executive Kenny Alexander.

At 0810 BST, the shares were up 17% at 93.64p.

Jefferies, which rates the shares at 'buy', said in a research note: "We read the investment as a positive endorsement of the 888/William Hill integration opportunity, and opportunistic given 888's low valuation.

"We have previously commented that the 888/WMH deal seems highly similar to the highly successful integration of GVC and bwin, familiar ground for several members of this new shareholder grouping."