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| Online betting company Bwin accepts GVC takeover bid | Online betting company Bwin accepts GVC takeover bid |
| (about 3 hours later) | |
| Online betting company Bwin has accepted a £1.1bn takeover offer from GVC Holdings in preference to rival bidder, 888 Holdings. | Online betting company Bwin has accepted a £1.1bn takeover offer from GVC Holdings in preference to rival bidder, 888 Holdings. |
| Bwin had originally agreed to an offer from 888, worth about £900m, but GVC, the owner of Sportingbet, fought back. | Bwin had originally agreed to an offer from 888, worth about £900m, but GVC, the owner of Sportingbet, fought back. |
| Bwin - whose brands include Partypoker, Partycasino and Foxy Bingo - said GVC's offer was "fair and reasonable". | Bwin - whose brands include Partypoker, Partycasino and Foxy Bingo - said GVC's offer was "fair and reasonable". |
| Bwin chairman Philip Yea said in a company video that shareholders were split about abandoning the 888 offer. | Bwin chairman Philip Yea said in a company video that shareholders were split about abandoning the 888 offer. |
| "There was a pretty even split of those that expressed views one way or the other. But we also had a significant block of shares that was happy to support the board on its deliberations," | "There was a pretty even split of those that expressed views one way or the other. But we also had a significant block of shares that was happy to support the board on its deliberations," |
| GVC's offer of 25p in cash and 0.231 new GVC shares comes to nearly 130p per Bwin.party share based on Thursday's closing price. | GVC's offer of 25p in cash and 0.231 new GVC shares comes to nearly 130p per Bwin.party share based on Thursday's closing price. |
| Reducing costs | |
| Bwin said the GVC offer provided £120m additional value compared with the 888 bid. | Bwin said the GVC offer provided £120m additional value compared with the 888 bid. |
| The company said they were also swayed by higher expected savings and GVC's track record of integrating acquisitions, such as that of Sportingbet in 2013. | The company said they were also swayed by higher expected savings and GVC's track record of integrating acquisitions, such as that of Sportingbet in 2013. |
| Earlier this week it was reported that GVC was prepared to launch a hostile bid for Bwin. | Earlier this week it was reported that GVC was prepared to launch a hostile bid for Bwin. |
| The 888 board confirmed it had withdrawn from the bidding process saying it cannot see sufficient value in Bwin to increase its offer. | |
| Stricter regulations are pushing online gambling companies to merge to try and reduce operating costs. | Stricter regulations are pushing online gambling companies to merge to try and reduce operating costs. |
| Size is also seen as vital to ensure competitiveness in an online market buoyed by the use of tablets and mobiles. | Size is also seen as vital to ensure competitiveness in an online market buoyed by the use of tablets and mobiles. |
| Shares in Bwin, rose in early trading in response to the news, but have since fallen. | |
| GVC shares have dropped nearly 4%. This morning 888 shares fell sharply but they have recovered following the company's announcement that it is not considering a counter offer. |