Betfair set float price

[Euler]

Discussion terminated, looks like I was right to sell into the market.

http://www.investegate.co.uk/betfair-gr ... 00106160E/

Following the announcement of the trading and strategy update, the Board received a revised proposal from the Co-offerors (the "Revised Proposal") on the evening of Friday, 10 May 2013. The Revised Proposal valued each Betfair share at 920 pence per share in cash (an increase of 5% over 880 pence) or an unlisted securities alternative of shares and loan notes subject to an overall limit of £250 million or approximately 26% of Betfair's issued share capital. The Revised Proposal remained conditional on, inter alia, completion of due diligence, arrangement of appropriate financing and receipt of a recommendation from the Board. The Board reviewed the Revised Proposal with its advisers and rejected it. This was communicated to the Co-offerors by the Chairman of Betfair (the "Chairman") on the morning of Saturday, 11 May 2013 and the Chairman sought to understand whether the Co-offerors would be making a further revised proposal.

On the evening of Sunday, 12 May 2013, the Board received a further revised proposal from the Co-offerors, which was described as a "full and final offer" (the "Further Revised Proposal"). The Further Revised Proposal valued each Betfair share at 950 pence per share in cash (an increase of 8% over 880 pence) or an unlisted securities alternative of shares and loan notes valued at 920 pence per share subject to an overall limit of £250 million or approximately 26% of Betfair's issued share capital. The Further Revised Proposal remained conditional on, inter alia, completion of due diligence, arrangement of appropriate financing and receipt of a recommendation from the Board.

The Board reviewed the Further Revised Proposal with its advisers and rejected it on the basis that it undervalues the Company and its attractive prospects. The Chairman communicated this decision to the Co-offerors on Sunday evening but indicated that, if the Co-Offerors were willing to further improve their proposal, the Board would consider further discussions. The Co-offerors indicated a willingness to reconsider their proposal in conjunction with discussions regarding their business plan for Betfair.

During these discussions it became clear that it would not be possible to agree the terms of any proposal in conjunction with a business plan that was deliverable. In light of this, the parties terminated discussions and the Co-offerors confirmed that they would be issuing a statement under Rule 2.8 of the Takeover Code that they do not intend to make an offer for Betfair.

[andyfuller]

Yeah saw this last night, Mark Davies was posting about it on Twitter.

I would love to know what was in that Business Plan

Also I wonder if the board will now use the cash Betfair have to payout the dividend Mark Davies thinks they will. I suspect they won't and will instead use the cash or part of it for further acquisitions.

Also it will be interesting down the line to see if the board was right to reject the offer, my very uneducated view would be that they are wrong to have done so.

[Euler]

Also it will be interesting down the line to see if the board was right to reject the offer, my very uneducated view would be that they are wrong to have done so.

I agree, the brand was built on the concept of 'bet - fair' not a bloody sportsbook. By pursuing that so publically they will become just another bookmaker.

[andyfuller]

I fully agree - they have very much diluted the product and brand.

Share Price took a bit of a whack on the open, opened at 830 from a close yesterday of 895 (-7.26%) but has since recovered to 860, down 3.91% on the day.

Mark Davies saying on twitter that one of the 65 shareholders that hold over 140,000 shares got rid of 140,000 a short while ago.

[Euler]

Rumours on the street is that board didn't like CVC / Koch's plan to re-invigorate the exchange side of the business.

[herbie]

Euler Discussion terminated, looks like I was right to sell into the market.

Looks like its time to get out, would you agree?...even if its a little late...first time holding shares but can still get out for profit....any advice please?

[Euler]

I doubt there will be a another bid, so I would sell.

I guess the price will hold around this level and then drift about a bit, but will ultimately take it's lead from the next trading update.

[herbie]

thanks Euler will do, but I will keep a few shars to attend the next AGM

[Euler]

Was just speaking to somebody else about this. There is an old market saying, buy the rumour sell the fact. Nice phrase to remember for moments like this.

[herbie]

thanks.. Its a great way to learn quickly about trading shares and take over bids when you buy into the market..

[andyfuller]

Rumours on the street is that board didn't like CVC / Koch's plan to re-invigorate the exchange side of the business.

Dominic Walsh of The Times tweeted earlier today:

"On Betfair, I hear price not really an issue, more that management didn't buy into Koch's radical plan to focus on big exchange customers"

Wonder what is meant by that?

[jimrobo]

I'm sure it was documented somewhere....or at least I read somewhere that koch was more of an exchange purist and would be likely to take the company back to the initial model and concentrate on growing the exchange. Would have been a lot better for traders IMHO.

[Euler]

Mark Davis viewpoint on the failed bid for Betfair: -

http://www.markxdavies.com/2013/05/14/f ... s-welcome/

[steven1976]

It's an interesting post in reply to the article by I presume a market maker talking about liquidity, effect of PC and how bf could solve the liquidity problem on the weaker markets.

[andyfuller]

Can't say I agree about his/her point that winning customers should pay for a market to be seeded. Some other points I do agree with though.