CVC Capital gets extra time to make Betfair takeover bid

Betfair Betfair's exchange processes more than seven million transactions a day.

Private equity firm CVC Capital Partners has been given another 24 hours to come up with a bid for online gambling company Betfair.

The UK's Takeover Panel had set Monday as the cut-off point for CVC to either raise its initial bid of 880 pence per share, or withdraw.

But it has now extended that deadline until Tuesday, with Betfair's consent.

In April Betfair rejected the initial £912m takeover approach, saying it "fundamentally undervalued" the firm.

Betfair shares had been trading at 700p before CVC said last month it was considering a bid. On Monday the shares closed at 895p. Betfair was originally floated at £13 a share.

Last week, Betfair gave an update on its strategy for the business.

"A new management team is in place and a wide ranging restructuring has been completed ahead of schedule, allowing us to increase our cost savings substantially," Betfair chief executive Breon Corcoran said last week.

Cost savings of about £23m have been achieved by reducing the workforce by 500 people, or roughly one-fifth.

Betfair said that estimated revenue for the financial year which ended on 30 April was about £387m.

Its exchange processes more than seven million transactions a day.

The preliminary proposal from CVC and other investors - including Richard Koch and Antony Ball - offered 880p per share in cash or an "unlisted securities alternative made up of shares and loan notes in a new entity".

Mr Koch, a co-founder of LEK Consulting, holds a 6.5% stake in Betfair. Mr Ball is a non-executive director at Luxembourg-listed investment group Brait.

More on This Story

The BBC is not responsible for the content of external Internet sites

More Business stories


Features & Analysis

  • French luxury Tea House, Mariage Freres display of tea pots Tea for tu

    France falls back in love with tea - but don't expect a British cuppa

  • Woman in swimming pool Green stuff

    The element that makes a familiar smell when mixed with urine

  • People take part in an egg-cracking contest in the village of Mokrin, 120km (75 miles) north of Belgrade, Serbia on 20 April 2014In pictures

    Images from around the world as Christians mark Easter Sunday

  • Female model's bottom in leopard skin trousers as she walks up the catwalkBum deal

    Why budget buttock ops can be bad for your health

Elsewhere on the BBC

  • ITChild's play

    It's never been easier for small businesses to get their message out to the world


  • An aerial shot shows the Olympic Stadium, which is closed for repair works on its roof, in Rio de Janeiro March 28, 2014.Extra Time Watch

    Will Rio be ready in time to host the Olympics in 2016? The IOC president gives his verdict

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.