New doubts over bwin.party deal as GVC shares tumble
Fresh doubts have been raised over the decision by bwin.party’s board to accept a takeover offer from GVC Holdings after the value of the bid dropped due to the latter suffering from a weak share price.
According to The Independent newspaper, GVC’s offer is now almost identical in value to the bid that was rejected from 888.
Since having its bid accepted, GVC has been hit by a slump in its share price, with its valuation of bwin.party at approximately 130p at the time of the offer having slumped to 116p.
GVC’s offer is to be funded by bwin.party shareholders accepting GVC shares instead of cash.
However, shares at 888 have remained relatively steady, with its cash and shares offer remaining level at approximately 115-116p, which was turned down by bwin.party despite the two companies having originally agreed a deal.
In the wake of the most recent GVC offer, bwin.party opted to withdraw its initial recommendation of the bid from 888.
Speaking after bwin.party accepted the GVC offer, Philip Yea, chairman of the online gaming brand, said the board had taken into account “many factors” of the bid, listing the headline value per share as one of the standout features.
“In recommending the offer from GVC, the board has taken into account many factors including, but not limited to, the headline value per share and the consideration being offered, the level, timing and deliverability of the financial synergies to be generated and the enlarged group's growth strategy in an increasingly competitive marketplace,” Yea said.
Neither bwin.party nor GVC have commented on the situation.