Shareholders to vote on YouBet.com merger

Leading American online horserace wagering operator YouBet.com Incorporated has announced that it will hold a special shareholders meeting next month to vote on its previously announced merger with Churchill Downs Incorporated for $126.8 million.

The merger was approved in November by YouBet.com’s Board Of Directors and would see Louisville-based Churchill Downs purchase all of the California firm’s outstanding shares.

The deal will see YouBet.com shareholders receive a fixed ratio of 0.0598 shares of Churchill Downs stock plus 97 cents in cash for each share they own. At the completion of the deal, YouBet.com shareholders will own approximately 16 percent of Churchill Downs.

“The proposed merger is subject to customary closing conditions including the requisite approval by holders of YouBet.com’s common stock at the special meeting and the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976,” read a statement from YouBet.com.

“In connection with the proposed merger, Churchill filed a definitive proxy statement/prospectus with the US Securities And Exchange Commission (SEC) pursuant to Rule 424 on March 2, 2010. The proxy statement/prospectus is available on the SEC’s website at SEC.gov and will be mailed by YouBet.com together with a proxy card on or around March 4, 2010 to YouBet.com’s stockholders of record as of the close of business on February 17, 2010.”

The special meeting is scheduled to be held at YouBet.com’s offices in Woodland Hills on April 6 from ten o’clock in the morning local time.