Betfair rejects CVC takeover bid

Suzie Neuwirth

ONLINE gambling company Betfair has today rejected a takeover bid from private equity firm CVC Capital Partners and other investors, on the grounds that it undervalued the company.

The bookmaker was offered 880p per Betfair share by CVC Capital Partners, Richard Koch and Antony Ball on 19 April.

“We have a unique business with a market position, profitability, cash flow and prospects that this proposal fails to recognise,” said chairman Gerald Corbett.

“Our new management team are implementing the strategy announced in December 2012 and it is this that will realise value for shareholders. We will provide an update to the market on 7 May 2013 to set out the good progress we are making in the implementation of our strategy, including cost efficiencies, and our recent trading performance.”