The Takeover Panel has given 888 and Rank until August 21 to come up with a formal bid or walk away.
Sources said that this could put pressure on them because their own talks were at a very early stage and neither the structure nor price of a bid had been finalised.
But most analysts expect a full three-way merger, bringing together William Hill’s sportsbook and betting shops, 888’s superior online technology and marketing and Rank’s physical and virtual casino and Mecca bingo business.
888 has been a bid target of Hill previously, has also seen off two bids from Ladbrokes and failed in an attempt to buy Bwin.party.
But now that Betfair and Paddy Power have merged in a £5 billion deal and Ladbrokes and Coral are near completing their £2.3 billion combination, the imperative for William Hill to find a partner in the online space has increased.
The bookie, which once led the internet market for horse racing and football betting, has fallen well behind its rivals, something which led to the departure of its second chief executive in two years, James Henderson, last week.
Broker Cenkos said a successful bid for William Hill would have to be pitched “well over 400p” and suggested it should find itself a white knight to see off takeover interest.
