Shares in Betfair fell around 4.5 per cent following rumours that Japanese telecommunications company Softbank was selling off its 10.57 per cent stake in the online betting company were being sold off to a major US bank for 809p each. Prices fell from 879.5p to 839.5p.
The latest update from Equity Radar shows Softbank's stake in Betfair (11,0331,000 shares) was sold in a secondary share offering today for 827p each, raising £91.24m. Deutsche Bank acted as bookrunner.
This morning, founder of Betfair Mark Davies tweeted:
I'm hearing that Goldman Sachs have taken the 11% Softbank stake in Betfair in its entirety at £8.09.— Mark Davies (@markxdavies) July 8, 2013
Correction on my last #betfair tweet...Right price, wrong house. Though GS are buyers they weren't on the other side of the trade. Apols— Mark Davies (@markxdavies) July 8, 2013
In May, talks of a potential 970p per share offer from private equity firm CVC broke down over concerns from Betfair’s chief executive about CVC’s vision for the company.
This morning, SoftBank had its credit rating cut to junk (BB+ to BBB) by Standard & Poor with a stable outlook after winning approval for its $21.6 billion bid to buy Sprint Nextel Corp.