Betfair has responded to rumours that CVC Capital Partners may be about to launch an acquisition bid for the business by saying that ‘there can be no certainty that an offer will be made’.
Publicly-listed Betfair has moved to quell rumours of a takeover bid and has advised shareholders to ‘take no action’.
Internet betting business business Betfair, which was set up by Andrew Black and Edward Wray in 2000, is listed on the London Stock Exchange.
Its statement has led to its share price rising by 72p from its close price on Friday.
Gerald Corbett, chairman of Betfair, comments, ‘With our new team now in place and the announcement of a more focused strategy in December, I believe that Betfair is currently going through one of the most exciting phases of its development.
‘Our management team is actively implementing the new business plan for the company and we remain fully committed to delivering on the new strategy and providing improved returns for our shareholders.’
The decision by Betfair to make an announcement to the market came after CVC Capital Partners, the firm which owns Formula One, said that it had had ‘preliminary discussions’ with investors Richard Koch, Antony Ball and partners regarding options in respect of Betfair. It followed that up by disclosing that this could include an offer for Betfair.
Koch, a co-founder of LEK Consulting, holds a 6.5 per cent stake in Betfair while Ball is a non-executive director at Luxembourg-listed investment group Brait.
Betfair first floated on the London Stock Exchange in October 2010, valuing the company at £1.4 billion.
At the end of 2012, Betfair founder Wray extended his angel investment activity by participating in a funding round for social media marketing technology business Footfall123.