Betfair responds to rumours of CVC takeover

Betfair, the world's largest internet betting exchange, has responded to speculation that private equity firm CVC will seek to acquire the company saying that:

There can be no certainty that an offer will be made or as to the terms on which any offer might be made. In the meantime, shareholders are strongly advised to take no action.

Our gaming reporter James Titcomb on the potential bid:

CVC Capital Partners is believed to have the company in its sights, two and a half years after Betfair floated at a value more than double what it is now worth.

Moves to acquire the company are at an early stage, with CVC yet to arrange financing for the deal. One source said that the private equity group has not yet approached Betfair about a potential buyout.

The online bookie has seen its market value wane since its initial public offering in October 2010, when it floated at over £15 per share. On Friday the company’s shares fell below £7 per share, although they have risen in value since January on bid speculation. Its current market capitalisation is around £720m, although CVC would have to pay slightly more for the firm.

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