Five questions answered on Betfair’s rejection of CVC Capital’s takeover bid

CVC shot down.

Online gambling firm Betfair has rejected CVC Capital Partners’ take over bid. We answer five questions on why the company rejected the bid.

What offer did CVC Capital Partners make to Betfair?

CVC, which also owns Formula 1, made a preliminary bid of 880p per share to take over Betfair, offering the company around £912m in total.

Why did Betfair reject this bid?

According to The Telegraph, the company said in a statement released today that the offer “fundamentally undervalues the Company and its attractive prospects".

According to the market, how much is Betfair worth?

On Friday shares in Betfair closed at 805p, which values the business at about £834m.

What else has Betfair said?

Betfair's chairman, Gerald Corbett, speaking to The Telegraph, said: "We have a unique business with a market position, profitability, cash flow and prospects that this proposal fails to recognise.”

He added: "We will provide an update to the market on 7 May 2013 to set out the good progress we are making in the implementation of our strategy, including cost efficiencies, and our recent trading performance."

How well have Betfair done in recent years?

The company, which was founded in 2000 by Ed Wray – a former JP Morgan trader – and former professional gambler Andrew Black, has struggled over the last two-and-a-half years that it has been a public company.

Its shares fell dramatically from its IPO price of £13 a share, following an over-hyped flotation, and last December it announced it was pulling out of Russia and Canada because of their unclear gambling regulations, despite the fact the markets made up almost a quarter of the company’s revenue.

Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

Getty
Show Hide image

An alternative Trainspotting script for John Humphrys’ Radio 4 “Choose Life” tribute

Born chippy.

Your mole often has Radio 4’s Today programme babbling away comfortingly in the background while emerging blinking from the burrow. So imagine its horror this morning, when the BBC decided to sully this listening experience with John Humphrys doing the “Choose Life” monologue from Trainspotting.

“I chose not to choose life: I chose something else. And the reasons? There are no reasons. Who needs reasons when you’ve got Radio 4?” he concluded, as a nation cringed.

Introduced as someone who has “taken issue with modernity”, Humphrys launched into the film character Renton’s iconic rant against the banality of modern life.

But Humphrys’ role as in-studio curmudgeon is neither endearing nor amusing to this mole. Often tasked with stories about modern technology and digital culture by supposedly mischievous editors, Humphrys sounds increasingly cranky and ill-informed. It doesn’t exactly make for enlightening interviews. So your mole has tampered with the script. Here’s what he should have said:

“Choose life. Choose a job and then never retire, ever. Choose a career defined by growling and scoffing. Choose crashing the pips three mornings out of five. Choose a fucking long contract. Choose interrupting your co-hosts, politicians, religious leaders and children. Choose sitting across the desk from Justin Webb at 7.20 wondering what you’re doing with your life. Choose confusion about why Thought for the Day is still a thing. Choose hogging political interviews. Choose anxiety about whether Jim Naughtie’s departure means there’s dwindling demand for grouchy old men on flagship political radio shows. Choose a staunch commitment to misunderstanding stories about video games and emoji. Choose doing those stories anyway. Choose turning on the radio and wondering why the fuck you aren’t on on a Sunday morning as well. Choose sitting on that black leather chair hosting mind-numbing spirit-crushing game shows (Mastermind). Choose going over time at the end of it all, pishing your last few seconds on needlessly combative questions, nothing more than an obstacle to that day’s editors being credited. Choose your future. Choose life . . .”

I'm a mole, innit.