BwinParty’s decision to accept a £1 billion ($1.5 billion) takeover offer by its far smaller rival GVC has been thrown into renewed question as the value of the bid plunged due to the bidder’s weak share price, the U.K.’s Independent newspaper reported.
GVC’s takeover offer is now almost identical in value to the one BwinParty rejected from the bigger bidder, 888, calculations by The Independent show.
GVC’s shares have tumbled since its offer was accepted. As much of its bid was to be funded by BwinParty’s shareholders accepting GVC shares instead of cash, the whole value of its offer has sunk, too.
From valuing Bwin at 130p a share at the time of the bid, it has now fallen to just 116p. Meanwhile, shares in 888 have remained fairly steady, so its suggested cash and shares offer would still have been at the level of around 115p-116p which was rejected by Bwin.
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