By Neil Maidment
LONDON, Aug 27 (Reuters) - Online gambling company
Bwin.party BPTY.L has asked GVC Holdings GVC.L to table its
best offer for the business after the duo addressed key concerns
over the suitor's latest 1 billion pound ($1.55 billion)
approach.
GVC looked to have lost the race for Bwin after it accepted
a 900 million pound cash-and-stock offer from 888 888.L in
July, but the Sportingbet owner has since returned with two
improved proposals to hijack the deal. Its latest was a 1.03
billion pound offer on Aug. 7. ID:nL3N10I42W
Bwin and GVC have since been in talks over the terms of that
proposal and Bwin said on Thursday that it is satisfied that key
aspects have now been addressed.
"Bwin.party has now asked GVC to clarify, with respect to
its proposal, the best terms on which GVC is prepared to make a
formal offer to acquire all of the issued and to be issued
shares in bwin.party," a Bwin statement said.
A source close to GVC told Reuters this month that some of
Bwin's earlier questions were focused on potential cost savings.
GVC had said on Monday that it expected to resubmit a
proposal to the Bwin board in the near future and on the same
terms made on Aug. 7. ID:nL4N10Z2T3
SECTOR CONSOLIDATION
Bwin said that its board's unanimous recommendation of 888's
offer was unchanged by this announcement. In July Bwin said
888's offer carried fewer risks than GVC's, which was made in
conjunction with Amaya Inc AYA.TO .
GVC has since dropped Amaya and now has backing from U.S.
private equity firm Cerberus Capital Management. ID:nL4N0ZX23Y
The Bwin saga is part of wider consolidation in the gambling
sector, which has brought a string of deals this year as firms
respond to higher tax bills in Britain and tighter regulation by
looking to bulk up and better compete in an online market.
On Wednesday Betfair BETF.L and Paddy Power PLSA.I
agreed in principle to a 5 billion pound merger, sending their
shares soaring. That tie-up followed last month's all-share deal
between Ladbrokes LAD.L and Gala Coral to create a 2.3 billion
pound bookmaker group. ID:nL5N1110QD ID:nL5N1040ZM
Bwin's share price gained 0.5 percent by 0916 GMT, with GVC
and 888 up 2.7 percent and 1.3 percent respectively.
($1 = 0.6457 pounds)
(Editing by David Goodman)