Betfair shares fall after talks break down

BETFAIR shares fell as much as eight per cent yesterday as the City reacted to takeover talks breaking down.

The online betting firm said on Monday night that it had rejected a second 950p-per-share bid from CVC Capital, saying it undervalued Betfair. Before the talks were announced in April, shares were trading at below 700p, but despite the initial shock, the company’s stock closed just 3.4 per cent down at 865p yesterday, with investors backing chief executive Breon Corcoran’s turnaround strategy.

“The early signs are positive and the shares deserve to hang on to most of their recent gains,” Peel Hunt’s Nick Batram said.