CVC Partners has until today to renew its bid to take over Betfair after the the popular betting exchange rejected last month’s proposal.
The offer of £910 million put forth by CVC three weeks ago was found by Betfair executives to be less than acceptable. Analysts of the deal have surmised that upping the purchase price by £10 per share might be enough to take the company private, especially considering Betfair’s recent projected revenue figures that show estimates for fiscal year 2013 to be well above £387 million.
“We would expect CVC to come forward with a higher-priced approach to reflect the extra value in the core business highlighted by [the latest] update,” said Simon French of Panmure Gordon.
Betfair’s latest increased revenue projections may entice the company to invest its holdings in new acquisitions instead of paying off its shareholders. CEO Breon Corcoran has stated that he would like to follow the purchase of Blue Square Bet in April with similar “targeted acquisitions” that would expand Betfair’s geographic reach and close certain product gaps.
Rumours abound that today’s deadline may be extended, but Takeover Panel rules require the London-listed Betfair to agree to any such considerations.