Shares Fall in Betfair Group After Takeover Talks Fail

Before you go, we thought you'd like these...
Before you go close icon

LONDON -- Betfair Group saw its share price fall over 6.5% in early trade this morning, with more than 60 pence knocked off its closing price of 895 pence yesterday, after it reported that takeover discussions with CVC Capital Partners, Richard Koch, Antony Ball, and partners had been terminated.

The interested consortium also announced that it had been "unable to agree financial terms with the board... and as a result has no intention of making an offer," with Betfair's board considering the final bid to undervalue the company.

Commenting on the news, Betfair chairman Gerald Corbett 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.


Previously, on April 22, Betfair revealed that it had rejected a preliminary proposal from the "co-offerors" regarding a possible offer for the company at an offer price of 880 pence per share. 

Then, following the announcement of Betfair's trading and strategy update on May 7, the board received a revised proposal from the co-offerors that valued each Betfair share at 920 pence per share in cash or "an unlisted securities alternative of shares and loan notes subject to an overall limit of 250 million pounds or approximately 26% of Betfair's issued share capital," which was similarly rejected after consideration.

A final offer was submitted to the board on May 12 of 950 pence per share in cash, or an unlisted securities alternative of shares and loan notes valued at 920 pence per share subject to an overall limit of 250 million pounds or approximately 26% of Betfair's issued share capital. However, considering the proposal to undervalue the company, the board rejected the consortium for a final time.

Whether you think today's fall in share price presents a buying opportunity remains your decision. But if you're looking for another company that should soar in price, we've pinpointed our favourite growth share and produced a special report in which we evaluate its finances, risks, and growth prospects going forward. Simply click here to get your copy delivered to your inbox immediately -- completely free.

The article Shares Fall in Betfair Group After Takeover Talks Fail originally appeared on Fool.com.

Sam Robson has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners