Betfair terminates talks with CVC Capital and partners

Betfair, the FTSE 250 online betting group, has received and rejected two revised proposals from CVC Capital Partners, Richard Koch, Antony Ball and partners valuing each Betfair share at 920p and 950p in cash, respectively.

Betfair, the FTSE 250 online betting group, has received and rejected two revised proposals from CVC Capital Partners, Richard Koch, Antony Ball and partners valuing each Betfair share at 920p and 950p in cash, respectively.

Following further discussions, all talks have now been terminated.

The first preliminary proposal - made on the evening of May 10th - was rejected despite marking an improvement on the offer price of 880p per share made on April 22nd. After the group brought forward its trading update, which revealed it had delivered 'excellent' progress in its strategy, the offerors then upped their proposal to 920p.

Following the rejection of this they made another revised offer of 950p on the evening of May 12th, which they described as a "full and final offer".

Betfair said it reviewed the further revised proposal with its advisers and rejected it on the basis that it "undervalues the company and its attractive prospects".

Although the offerors then indicated that they would be willing to reconsider their proposal in conjunction with discussions regarding their business plan for Betfair, it became clear it would be impossible to agree on the terms of these, and as such all discussions were terminated, the group explained.

Gerald Corbett, Chairman of Betfair, said: "The board has spent considerable time assessing the various proposals, including detailed discussions with the co-offerors. The board concluded that none of the proposals represented adequate value or acceptable execution risk.

"Under the new direction of Breon Corcoran and his management team the board believes that Betfair is making excellent progress in the implementation of its strategy with momentum building from early success. The board remains confident in the continued delivery of this strategy and the company's outlook and growth prospects."

NR

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