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"Internet betting exchange\u00A0Betfair\u00A0has today rejected an initial bid from CVC Capital Partners, a private equity firm that owns the Formula One Group, on the basis that it undervalued the publicly-listed company and was \u201Chighly conditional.\u201D\r\n\r\nThe preliminary proposal from CVC Capital Partners consisted of an offer price at 880 pence per share, worth a reported \u00A3910 million ($1.38 billion USD). Betfair was also given an \u201Cunlisted sercurities alternative\u201D, which would have included shares and loan notes as part of a new entity following the completion of the deal.\r\n\r\nThe conditions, Betfair notes, included some standard due diligence, the \u201Carrangement of appropriate financing\u201D and proof of recommendation from the company board.\r\n\r\nGerald Corbett, chairman of Betfair, has stood firm and defended the company\u2019s future prospects.\r\n\r\n\u201CWe have a unique business with a market position, profitability, cash flow and prospects that this proposal fails to recognise,\u201D he said.\u00A0\u201COur new management team are implementing the strategy announced in December 2012 and it is this that will realise value for shareholders.\u201D\r\n\r\nMr Corbett said that to reassure Betfair shareholders, the company would provide an update on the progress of its new strategy, including cost efficiencies and its recent trading performance, on May 7.\r\n\r\nBetfair acquired rival online betting exchange Blue Square for \u00A35 million ($7.6 million USD) last month. The deal included all of Blue Square\u2019s customer database, redirecting all existing users to Betfair\u2019s website henceforth.\r\n\r\nThe proposed deal from CVC Capital Partners was notable because Betfair went public and entered the London Stock Exchange in October 2010, priced\u00A0at \u00A313 per share.\u00A0Accepting the takeover bid would have effectively reversed this move, however, making it a private company once again.\r\n\r\nBetfair was founded by Andrew Black and Edward Wray back in 2000 and has since grown to become one of the world\u2019s largest online betting exchanges.\r\n\r\nThe company employs more than 2,000 people and holds betting licences in numerous countries including\u00A0the UK, Gibraltar, the US, Australia, Italy, Denmark and Malta.\r\n\r\nIt hasn\u2019t been smooth sailing recently, however. The company sold its minority stake in social gaming firm Kabam last December, following plans to cease all operations in Cyprus, Germany and Greece.\r\n\r\nBetfair is still headquartered in the UK, but has since moved offshore and is now registered in Gibraltar.\r\n\r\n\u00A0Image Credit:\u00A0MIKE CLARKE/AFP/Getty Images"^^<http://www.w3.org/2001/XMLSchema#string>
<http://thenextweb.com/insider/2013/04/22/betfair-rejects-1-38b-takeover-bid-from-cvc-says-it-fundamentally-undervalues-the-firm/>