Bookmaking giant William Hill was today confirmed as being behind secret takeover talks with mobile gambling firm Probability as new City disclosure rules came into force. The Takeover Panel has said target companies which receive an informal approach must now declare it publicly to the stock market. That will force any would-be bidder to clarify if it intends to make a formal offer within 28 days, rather than let the process drag on for months. Regulators brought in the changes to alter the balance of power between target companies and bidders after criticism during Kraft's takeover of Cadbury that the rules favoured those making an approach. Gibraltar-based Probability has been having "preliminary discussions" with William Hill but there has been no offer. William Hill must now make a decision by October 17. A raft of other companies made similar "put up or shut up" announcements this morning. Gaming firm Sportingbet said Ladbrokes has to come clean on its intentions after beginning takeover talks in June. Meanwhile, Merchant Securities has been approached by South African financial services group Sanlam. Jeremy Phillips, corporate finance partner at law firm Pinsent Masons, said target companies will now be "in play" for a shorter time period. "These changes should reduce the uncertainty for target companies and their shareholders," he said. But bidders will have less time to carry out due diligence procedures and raise financing.
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