CVC confirms preliminary talks over Betfair takeover bid

Betfair shares increased by as much 14per cent because of takeover talks.

09:41 16 April 2013

CVC Capital, the private equity firm that owns Formula one, has confirmed preliminary discussions aimed at taking over Betfair; an online betting exchange designed to allow gamblers to bet against each other.

CVC’s statement said that they’ve discussed aspects with investors Richard Koch, who holds 6.5per cent stake in Betfair. Antony Ball and partners were also present during the initial discussion.

In a statement, CVC said: "CVC keeps a wide range of opportunities under regular review, and confirms that it has had preliminary discussions with Richard Koch, Antony Ball and partners regarding options in respect of Betfair, which could include an offer for Betfair by funds advised by CVC together with Richard Koch, Antony Ball and partners."

 

Meanwhile, Gerald Corbett, chairman of Betfair said they are now focused on running the business. He also advised shareholders to sit back and take no action.

 

He added: "With our new team now in place and the announcement of a more focused strategy in December, I believe Betfair is currently going through one of the most exciting phases in its development.

 

"Our management team is actively implementing the new business plan for the company and we remain fully committed to delivering on the new strategy and providing improved returns for our shareholders."

 

Betfair shares surged as much as 14per cent because of this recent development.