bwin.party confirms GVC Holdings acquisition bid

Gambling group Bwin.Party Digital Entertainment, at the center of a takeover battle between its rivals, said GVC Holdings had offered to buy it in a cash and stock deal valued at 908 million pounds ($1.4 billion), according to Reuters.

GVC's proposal could increase the chances of a bidding war with rival 888 Holdings, which made a proposal in May to buy Bwin for an undisclosed amount.

888 declined to comment on whether it planned to make a counter bid.

"I don't think 110 pence is a price that knocks 888 out of the process, if they really wanted it but equally they had ample time to match or better that bid," analyst Nick Batram of Peel Hunt said.

GVC's proposed offer shows how consolidation is hotting up across the gambling industry, with fast-growing online players searching for scale and more traditional gambling firms looking for ways to bolster services and cushion the impact of tighter regulation and higher taxes in Britain.

GVC's Chief Executive Kenneth Alexander told Reuters he expected the potential deal to provide benefits of not less than 80 million euros ($88.47 million).

 

 

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