In a filing with the London Stock Exchange, bwin.party said “key aspects of GVC’s proposal have now been addressed to bwin.party’s satisfaction”.
“The board continues to believe that its offer is of significantly greater intrinsic value than the proposal outlined by GVC Holdings on August 24.The board further notes that it remains the unanimously recommended bidder and continues to work towards the completion of the proposed transaction”.
888’S LEAD position in the battle for online gaming giant Bwin.party was thrown into doubt yesterday when the takeover target asked rival bidder GVC to finalise its best offer.
Prior to this speculation, it was assumed that GVC had finished second, behind 888 Holdings, in the race for bwin.party.
Although it seemed as though the terms offered by 888 were more appealing to bwin earlier, the company is now willing to reconsider GVC’s proposals, but only if it is upfront about how much it is prepared to pay.
On Monday, GVC said it had made “significant progress” in bid talks with Bwin after rumours emerged that it had increased its proposed offer for the company last week.
888, which like Bwin runs casino, poker, bingo and sportsbook offerings, also posted first-half results on Friday, which showed the adverse impact of a new UK online tax levy. The pair were working through the remaining issues of GVC’s bid, and Bwin. Bwin responded by saying, “Of course the board will consider it against 888’s current offer”.
A source close to GVC told Reuters this month that some of Bwin’s earlier questions were focused on potential cost savings. Party’s shares and be issued shares in the company. Party share, valuing Bwin. That translates into about a $124 million payday, not bad seeing as the US market has been in a perpetual state of fluctuation as of recently. The cash component – at up to 25p, is smaller than the one offered by 888.
On Wednesday Betfair and Paddy Power agreed in principle to a 5 billion pound merger, sending their shares soaring.