Sportingbet said that if a formal offer was made it would recommend it to shareholders.
BBC: William Hill and Sportingbet agree takeover terms
By lunchtime, shares in William Hill were 3.5% higher, but Sportingbet was down 0.5%.
But Sportingbet, a larger, U.K.-based rival that takes 75% revenue from U.S., has yet to take such drastic measures.
FORBES: Sportingbet's Chairman Dicks Arrested In U.S.
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