Betfair rejects CVC-led £912m takeover bid

CVC held preliminary discussions with key shareholders Richard Koch – who currently owns a 6.5% stake in Betfair – and Antony Ball earlier this month.

Koch and Ball teamed up with CVC to bid for Betfair but the offer was rejected, with the company's board stating it "fundamentally undervalues the company and its prospects, and is highly conditional".

The offer valued each Betfair share at 880p, a 9% premium on April 19's closing price. CVC also proposed to create a new company and issue new shares and loans to existing shareholders.

"CVC is disappointed by the board's response since it was a serious offer. Betfair is a company where changes need to be made and it is a situation best suited to private investors," said a source close to the situation.

In a statement released on April 22, Betfair chairman Gerald Corbett said the company has a "unique business with a market position, profitability, cash flow and prospects that this proposal fails to recognise".

In December last year, Betfair agreed to reduce its shareholding in foreign exchange and precious metals multilateral trading platform LMAX Exchange to 33%. The remainder was sold to the existing management for an undisclosed sum.

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