Betfair waits to see if CVC will increase takeover bid

Shares traded as high as 947p this morning. Be interesting to see how this concludes.

Any news on this?

CVC asked for more time, and have until tomorrow

Thanks for the info.

Do you know how things things tend to work out Clydebank? I am not clueless when it comes to city stuff.

Not really frog but you can have hostile takeovers or friendly takeovers.  In a friendly takeover the Board of Directors will liaise with the people making the offer and recommend the bid to shareholders.  in a hostile takeover they won't and the hostile bidder will try and make an offer they feel shareholders can't refuse. 

I think normally you'd expect a share price to rise around 10% upon an accepted takeover bid and the fact that the current price is only 2% higher than the previous bid suggests not, especially since the Board stated it "fundamentally undervalued" the firm.

that's how it strikes me too CB.

maybe they've asked for an extension to give them more time to read the forum.

Maybe. A lot of value might be added if the exchange is released from the self-imposed shackles of the Premium Charge and allowed to grow again.

A seven figure sum from the PC each year (on £380m) is peanuts. It was a huge mistake. No one thought through that people would stop market making (not bother) and thus revenue growth would stop.

A seven figure sum from the PC each year (on £380m) is peanuts.

Do you know exactly what they receive from PC/year?

There are a few individuals/syndicates who each pay 7 figures alone.

This maybe the case. I think there are a few who pay 'alot' and some traders and inrunning folks that are still here paying a little. But the total is very low compared to the overall revenues. PC1 may have resulted in a tiny net increase in revenue (but a huge drop in goodwill). PC2 has killed the exchange.

THEY know they've done a wrong un with the PC.  That's why account managers were mobilised to sound out the PC payers a couple of months back. Mine told me it was being looked into to make it fairer with a possible weekly allowances etc.  This came from the very top.  They would not have bothered unless they realised that markets were starting to be affected.  Too many post were going up all over the shop regarding lack of liquidity.

Unfortanely for them this place is not some betting Utopia were backers and layers meet in perfect harmony.  The markets need people to sit there and price up events as tight as possible and not get done over for up to 60% for providing BF's recreational punters a chance to get in and out at near 100% books. 

We are only taking about 0.001% of users here. If we can't have a win/loss ratio like that the whole concept is flawed.

IMO is was just an ill thought out money grab that has come home to roost.

The share price has risen from £7ish to £9 since the bid.If unsuccessful is the share price likely to freefall back to the initial price within a short period? Not very knowledgeable on shares-is this the likely scenario?

Racing Post ‏@RacingPost

Betfair rejected a final offer of 950 pence per share they said "undervalues the company and its attractive prospects"

I predict Betfair will be in really  bad shape in a couple of years unless they are taken over.

950p rejected.  Will shareholders ever see that price again?


Betfair Group plc

13 May 2013



Offer Discussions Terminated



Betfair Group plc ("Betfair" or the "Company") announces that discussions with CVC Capital Partners, Richard Koch, Antony Ball and partners (together, the "Co-offerors") have been terminated



On 22 April 2013, the Board of Betfair (the "Board") announced that it had rejected a preliminary proposal (the "Proposal") from the Co-offerors regarding a possible offer for the Company at an offer price of 880 pence per Betfair share. The Company also announced that following the completion of its financial year ended 30 April 2013, the Company would bring forward its trading and strategy update by 7 weeks to 7 May 2013.



On 7 May 2013, Betfair announced a trading and strategy update following the completion of its financial year ended 30 April 2013. The announcement provided the Company's shareholders and potential investors with a detailed update on recent trading performance and the progress in the implementation of the Company's strategy which was set out in December 2012. In particular, the update set out:



n The estimated results for the financial year ending 30 April 2013 which were above the top end of the Company's previous guidance range with estimated revenue of c.£387 million and estimated underlying EBITDA of c.£73 million;



n The excellent progress made in the delivery of the Company's plan, including an increase in the cost savings estimate to c.£30m (from £20m) and that the full benefit of the cost savings would be realised in the financial year ending 30 April 2014; and



n The strong strategic momentum within the Company, including indications that product and marketing strategies are working, evidence that the exchange and sportsbook are complementary, and that opportunities exist to accelerate growth through building a presence in international markets and utilising the Company's balance sheet strength to achieve greater scale.



Following the announcement of the trading and strategy update, the Board received a revised proposal from the Co-offerors (the "Revised Proposal") on the evening of Friday, 10 May 2013. The Revised Proposal valued each Betfair share at 920 pence per share in cash (an increase of 5% over 880 pence) or an unlisted securities alternative of shares and loan notes subject to an overall limit of £250 million or approximately 26% of Betfair's issued share capital. The Revised Proposal remained conditional on, inter alia, completion of due diligence, arrangement of appropriate financing and receipt of a recommendation from the Board. The Board reviewed the Revised Proposal with its advisers and rejected it. This was communicated to the Co-offerors by the Chairman of Betfair (the "Chairman") on the morning of Saturday, 11 May 2013 and the Chairman sought to understand whether the Co-offerors would be making a further revised proposal.



On the evening of Sunday, 12 May 2013, the Board received a further revised proposal from the Co-offerors, which was described as a "full and final offer" (the "Further Revised Proposal"). The Further Revised Proposal valued each Betfair share at 950 pence per share in cash (an increase of 8% over 880 pence) or an unlisted securities alternative of shares and loan notes valued at 920 pence per share subject to an overall limit of £250 million or approximately 26% of Betfair's issued share capital. The Further Revised Proposal remained conditional on, inter alia, completion of due diligence, arrangement of appropriate financing and receipt of a recommendation from the Board.



The Board reviewed the Further Revised Proposal with its advisers and rejected it on the basis that it undervalues the Company and its attractive prospects. The Chairman communicated this decision to the Co-offerors on Sunday evening but indicated that, if the Co-Offerors were willing to further improve their proposal, the Board would consider further discussions. The Co-offerors indicated a willingness to reconsider their proposal in conjunction with discussions regarding their business plan for Betfair.



During these discussions it became clear that it would not be possible to agree the terms of any proposal in conjunction with a business plan that was deliverable. In light of this, the parties terminated discussions and the Co-offerors confirmed that they would be issuing a statement under Rule 2.8 of the Takeover Code that they do not intend to make an offer for Betfair.



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."



Note 3 of Rule 2.5 of the City Code on Takeovers and Mergers (the "Code") requires the Company to point out that this statement is being made by the Company without prior agreement or approval of the Co-offerors.

The focus is on cost cutting and a second rate sportsbook.

The exchange has been left to slowly downsize with fewer markets and liquidity. A great idea sadly not updated for the modern marketplace.

More focus on cherry picking UK and IRE recreational punters.

They will hope to get in on the continued general growth of online sports betting. World cup next year.

If the 15% point of consumption tax does come in for the UK next year those cost savings will surely be wiped out and then what are they left with?

BETFAIR NEED TO GET INTO THE U S A ,THEN THEY WOULD BE WORTH THEIR WEIGHT IN GOLD.

THEY SHOULD SEND MR BETFAIR TO AMERICA AND HE SHOULD HAVE A QUITE WORD WITH THE MAIN SENATORS,

HE SHOULD SAY HELLO BUDDY ,LET BETFAIR INTO AMERICA AND WE WILL GIVE SOME DOLLERS TO SPONSER
THE MISS TEENY GLAMOUR PAGEANT

Singapore the latest country looking to tighten the noose on Betfair

YOU NEED TO SEND SOMEONE WHO WEARS A SHIRT AND TIE AND SUIT WHO SPEAKS POLITELY AND SOMEONE WHO DOESNT LOOK DODGY