Betfair Rejects Bid by CVC Capital Partners

Betfair Rejects Bid by CVC Capital Partners
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Multiple European financial news outlets are reporting private equity firm CVC Capital Partners has ended a $1.5 billion effort to purchase Betfair.

Reports say Betfair and CVC Capital Partners failed to agree on price and strategy. As of 2:42 p.m. local time Tuesday, May 14, the London Stock Exchange listed shares in Betfair being down 3.69%.

Betfair operates the world's largest betting exchange and owns U.S.-based advance-deposit wagering site and racing channel TVG. CVC Capital Partners is the largest shareholder in Formula One motor racing.

Reuters.com reports Betfair had been seeking 10 pounds per share and analysts said the failure to reach a deal will put pressure on Betfair chief executive officer Breon Corcoran to cut costs and pull back from countries like Greece and Germany where regulatory risk is too high or tax rates are punitive.

Analysts did not include Betfair's U.S. efforts as being impacted by CVC Capital Partners ending its pursuit. Betfair would like to offer exchange wagering in U.S. states that permit the wagering form that allows individuals to offer and accept set odds for a small transaction fee.
 

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