Bookie Hill poised to bet on Stanley

BOOKIES William Hill is delaying plans to shore up its pension deficit and return cash to shareholders until it decides whether to go ahead with a possible £700m deal for Stanley Leisure's betting shops.

The group, which today confirmed it was 'in exclusive discussions' with Stanley Leisure over a potential acquisition of its retail arm, last month announced plans to pump £40m into its staff pension scheme.

But this payment and a planned £453m cash return to investors are now on hold. Hill said it would press ahead with its former plans 'if a transaction on acceptable terms cannot be reached with Stanley Leisure'. It added: 'There is no certainty at this stage that the full terms of a transaction will be agreed.'

Shares in Stanley raced ahead 29p to 501p as the City reacted to the news of a possible tie-up. Hill shares fell 13½p to 559½p.

Hill would leapfrog Ladbrokes to become Britain's biggest bookmaker if it buys its rival's 625 branches, but it is expected to face stiff competition from Rank, owner of Blue Square.

The deal could also spark regulatory concern as Hill would own almost a quarter of Britain's 8,500 bookies.