GVC Holdings says it has made “significant progress” with its 1.1 billion pound bid for bwin.party, in its efforts to have the gaming company accept its bid over a rival bid from 888 Holdings.
GVC has put forward a series of bids to acquire bwin.party, with the latest offer of 122.5-pence-per-share, valuing bwin.party at approximately £1.1 billion (€1.5 billion/US$1.7 billion).
Bwin, however, earlier chose 888’s lower bid of ?898.3 million, saying move to 888 would be more stable.
Despite 888’s bid being accepted, GVC said in a statement that since submitting an increased offer this month, it has made “significant progress” on the deal and it expects to resubmit its proposal based on its latest offer in the “near future”.
“Significant progress has been made and the GVC Board expects to be in a position to resubmit its proposal to the bwin.party board in the near future and on the same terms as set out in the August 7 announcement, having resolved the remaining open issues to both parties’ satisfaction,” GVC said.
The company also signaled it would be willing to up its bid again if 888 increases its bid.
“We will do everything in our power to win this auction and deliver the best value for Bwin shareholders, both now and in the future,” GVC said in the statement. “A combined Bwin and GVC business would be far more valuable in the longer term than that of the alternative. We have greater synergies so we can pay more if necessary.”
Shortly thereafter, however, an unnamed GVC source told London’s Financial Mail the company is considering all options, including walking away from the deal is the bwin board continues to back 888’s bid.
In response, bwin.party said talks are ongoing with GVC, but its recommendation of the 888 offer is still in place.
“The board of bwin.party notes the earlier announcement today made by GVC and confirms that bwin.party is continuing to discuss with GVC and its advisers certain aspects of the GVC proposal,” bwin said in its own statement. “As previously announced, there can be no certainty that an offer will be made by GVC for bwin.party and bwin.party’s directors’ unanimous recommendation of 888 Holdings’ offer that was announced on July 17, is unchanged by this announcement.”
