bwin.party in Aggressive Mode; Seeks Higher Price From GVC, Greater Market Share in Italy

bwin.party
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  • PG News August 1, 2015
  • 2 Minutes Read

Barely a few days after GVC Holdings broke its ties with Amaya and upped its bid to acquire bwin.party, a new development has come up in the ongoing deal. Jason Ader, New York activist investor has made a statement that if GVC wants to take over bwin.party, it would have to increase its offer of 122.5p ($1.91) per share offer to approximately 140p per share, to overcome 888 Holdings’ $1.4 Billion offer for the gambling group.

Ader owns 5.2% of bwin.party through his investment fund Springowl and according to Bloomberg News; he is a major stakeholder in the negotiations. It was reported that Ader felt that GVC’s takeover bid would be a riskier proposition for bwin.party and its investors. The investor stated that GVC would have to pay a larger premium to compete with the greater takeover assets provided by 888 Holdings. Ader explained that, “I would want a much bigger premium than 122.5 pence. There are a lot of risks and uncertainties with this GVC bid.

Springowl has already reported that 888 Holdings shared amiable synergies with existing bwin.party operations and the takeover process would be a much easier one. Though bwin.party had accepted 888 Holdings bid, the company still retains the right to consider and accept any viable competitor bids.

The current atmosphere reveals that bwin.party is ready to accept GVC Holdings’ offer, if it was increased by 14%. Bloomberg News has stated that should bwin.party ultimately join hands with GVC, Kenneth Alexander, CEO, GVC would take control of the new company.

 

Bwin.party Planning Aggressive Strategy With More Betting Shops in Italy

Even as the tussle for its acquisition continues, bwin.party is already chalking out its future plans. Antonio Costanzo, Director of Sport Integrity and Regulation spoke on July 29 and stated that the group would actively seek to expand its share in the existing €7.9 billion a year market.

Bwin in collaboration with a new company, Obiettivo 2016 would launch the former’s first brand brick and mortar betting shops across Italy. With an intense parallel marketing campaign and 400 to 500 new betting shops, bwin.party was looking at taking control of up to 15% of the market.

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