GVC Holdings Proposes Third Offer to Acquire Bwin.Party for $1.7 Billion
In a recent turn of events, GVC Holdings announced they're ready to go all out to acquire bwin.party. The ongoing battle for control over bwin has taken an interesting turn yet again.
Contrary to reports claiming bwin.party reached an agreement with 888 Holdings, recent developments have muddled the situation slightly.
Allegedly, Bank of America Merrill Lynch and Barclays, who were underwriting a $650 million loan enabling the potential acquisition, temporarily halted their undertaking due to uncertainties surrounding bwin.party's position towards GVC's initial offer. Concerned that the board of bwin.party had not made their stance clear about GVC's original bid, the banks demanded a firm decision before releasing the funds.
Bound by Contract
A meeting among bwin.party board members was anticipated to seal the deal. However, just prior to the discussions, GVC entered the fray once more, casting doubt upon the outcome.
According to The Times, GVC is now prepared to raise its initial bid and offer more than the existing share price of 113.50 pence. The report reveals GVC's desire to surpass its initial offer of 100 pence per share, possibly reaching 130 pence per share.
This represents a 25% hike on GVC's original offer and would value the deal at over £1.1 billion ($1.7 billion) — around $300 million more than 888's current bid.
Following the spread of speculation on GVC's enhanced proposal, there was speculation that bwin.party's board would deliberate on the proposal on August 20th. In case the higher bid from GVC was accepted, 888 could respond with a new counteroffer.
In contrast, rejection of the £1.7 billion offer could effectively give 888 the green light to proceed with their initial plans. This would equally provide Barclays and JP Morgan the reassurance required to release the $650 million takeover loan.
Intense Tussle Between Two Powerhouses
While bwin.party may have maintained a sense of interest in GVC Holdings (reflected in the nonchalant reaction to GVC's previous advances), the board has hinted at 888's deal being the less complicated and consequentially, more ideal course of action. Additionally, GVC is a smaller conglomerate than bwin.party; therefore, any acquisition would have to be categorized as a reverse takeover.
This situation brings potential logistical issues and delays to an already drawn-out process. However, the ongoing tussle between these two colossal players within the industry has allowed bwin.party to secure the highest possible price, despite facing some challenges in recent times.
Regardless of the final decision made by bwin.party, the current dynamic could prove advantageous for the company, which has been trying to find a buyer for over a year. Their desire for a buyer has led to a healthy bidding war that could ultimately result in the highest possible price for their product.
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Source: www.casino.org
