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Betfair Says: Hah, $1.4 Billion Is Not Enough To Buy Us!

Megan Rose Dickey   

Betfair Says: Hah, $1.4 Billion Is Not Enough To Buy Us!
Tech1 min read

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Mike Ehrmann/Getty Images

Online gambling company Betfair just turned down a bid worth $1.38 billion from CVC Capital Partners.

We first saw the news over on The Next Web.

CVC Capital Partners, the private equity firm that happens to be the largest shareholder in the Formula One Group, made an offer of 880 pence per share, valuing Betfair at around $1.4 billion.

But Betfair says the price was too low, and effectively undervalues the company. The gambling company also says there were too many conditions attached to the offer, such as due diligence, and a receipt of recommendation from the board.

"We have a unique business with a market position, profitability, cash flow and prospects that this proposal fails to recognise," Betfair Chairman Gerald Corbett wrote in a statement. "Our new management team are implementing the strategy announced in December 2012 and it is this that will realise value for shareholders."

The company plans to give an udpate on May 7 to show the company's progress and how it's implementating its strategy, including cost efficiencies and its recent trading performance on the market.

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