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The former boss of Ladbrokes and Coral is preparing to launch a boardroom coup against the gambling group behind William Hill if his attempt to cease control is rejected.
Betting tycoon Kenny Alexander and his allies have hired investment bankers from Numis ahead of a potential showdown with the board of William Hill owner 888 and its cornerstone investor, according to City sources.
Mr Alexander, a gambling industry veteran who ran Ladbrokes and Coral-owner Entain until 2020, took a surprise stake in 888 earlier this month and has presented the board with proposals to install himself as chief executive and his close ally as chair.
Talks are currently continuing between the rebel investors and the board on a “friendly” basis, City sources insisted.
But amicable dialogue could yet turn hostile. Mr Alexander’s coalition, known as FS Gaming Investments, are thought to be unwilling to walk away if management rejects their proposals.
FS Gaming took a surprise 6.6pc stake in 888 earlier this month.
Mr Alexander, a well-known figure within the industry, has teamed up with two former allies from Entain, which was known as GVC while he was in charge.
Lee Feldman, GVC’s former chairman, and Steve Morana, a former non-executive, are both involved in the FS Gaming group. Their push is also understood to have the support of former GVC chief executive Shay Segev.
American hedge fund raider Parag Vora took advantage of 888’s bombed out share price by increasing his stake in 888 to more than 5pc last week.
Mr Vora is said to be supportive of Mr Alexander’s plans.
As well as installing Mr Alexander as chief executive, the rebel investors are thought to want to remove chairman Lord Jonathan Mendelsohn from the 888 board and install Mr Feldman.
However, Lord Mendelsohn, a former adviser to Sir Tony Blair and now Labour peer, is understood to have the support of 888’s largest shareholder, the Israel-based Shaked family.
The 888 board and the Shakeds are said to also harbour concerns about Mr Alexander taking over at the helm as a criminal proceedings rumble on against his former employer.
Entain, the new name for GVC, recently revealed it was in talks to negotiate a deferred prosecution agreement with Crown Prosecution Service that would likely result in a “substantial financial penalty”.
It follows an investigation by HM Revenue & Customs into corporate misconduct by GVC’s Turkish arm while Mr Alexander was group chief executive.
Sources close to the FS Gaming Investments said the Turkish scandal would have no bearing Mr Alexander’s potential appointment.