‘Clearly Pleased’
After William Hill abandoned talks with Amaya, Gensmann said he was “clearly pleased” with the board’s decision, adding that he was “looking forward to working with the board to create value for all the shareholders in William Hill.”
In their letter to the board, Gensmann and Mercadante urged William Hill to consider “all strategic options available, including a sale.” The talks with Amaya followed the demise of a proposed takeover of Hill by smaller rivals 888 Holdings Plc and Rank Group Plc.
Parvus doesn’t always oppose strategic deals -- even in the gambling business. The firm supported a combination of bookmaker Paddy Power with Internet betting exchange Betfair, in a deal that prompted rivals like William Hill and Amaya to review their strategies.
Parvus typically invests in 20 to 40 companies and aims to earn a profit over three to five years. It’s not averse to taking highly concentrated bets and exposure to a single company can be as much as a fourth of the fund’s assets, according to a Parvus investor document.
Last year, the firm’s long-short hedge fund gained 21 percent, while the long-only fund advanced almost 25 percent, the document showed. The HFRI Fund Weighted Composite Index declined 1 percent in 2015.
Parvus also owns a 15.2 percent economic interest in AA Plc, the U.K.-based roadside assistance provider.
This article was provided by Bloomberg News.