DAVID HARDING, the chief executive of William Hill, the second biggest bookmaker in Britain, has sold stock worth £5.2 million, almost his entire shareholding.

The sale hit confidence in the stock, depressing William Hill shares by 18½p to 540p. On Wednesday the shares had reached a record of 558½p.

At least one broker, Seymour Pierce, told clients to follow Mr Harding’s lead and sell. The broker argued that competition and maturing markets meant the high share price could not be justified.

Mr Harding became the second William Hill executive director within three months to sell millions of pounds worth of shares. A company spokeswoman said Mr Harding’s share sale had been triggered by “personal financial reasons” and did not reflect his commitment to the business.

On Wednesday Mr Harding exercised 996,954 options, granted to him under the company’s incentive plans for directors, to buy a similar number of shares. He sold 946,954 of those shares at 555p each. The options had a 10p strike price, generating Mr Harding an immediate trading profit of £5.2 million. He retains 50,000 fully paid shares but has an interest in yet-to-vest options under William Hill’s incentive scheme.

Mr Harding’s share sale comes after Tom Singer, the finance director, exercised and then sold £2.4 million worth of company shares in March.

William Hill’s shares have enjoyed a stellar run since the company floated two years ago, more than doubling in value.

The company is gearing up for a bumper month of trading that includes Royal Ascot and the European Football Championship.

William Hill is also in the middle of a share buyback.

Analysts expect the bookmaker to make a £235 million pre-tax profit this year, compared to £170.8 million last year.

Mr Harding has been William Hill’s chief executive since 2000. He received a £2.85 million bonus from the company’s float, which was ten times oversubscribed and received a boost by its timing ahead of the 2002 World Cup.

Mr Harding worked for Prudential Group, Charles Schwab Europe and Jaguar Cars prior to joining William Hill.

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