Hedge funds were buying William Hill shares as the delay in approving its £2.9billion sale to a US casino giant ran to a third week.

City sources said hedge funds betting on takeover deals, such as Melqart, Sand Grove and TIG, were paying £2.75 a share – more than Caesars has offered for the FTSE 250-listed bookmaker.

Last year, William Hill’s board recommended a £2.72-a-share offer from Caesars to shareholders after US private equity giant Apollo made a rival offer.

Usually, a judge approves the takeover of a UK publicly listed company days after the court hearing.

But two hedge funds have objected, saying they weren’t given enough information by William Hill’s board at the time of the shareholder vote.