When online casino company bwin.party agreed to a £1bn takeover offer from GVC Holdings, party of the acquisition price was in GVC stock.
That stock has now tumbled, seemingly decreasing the offer to the same value as a bid by 888 Holdings, according to an analysis by the British paper the Independent.
Much of GVC’s its bid was to be funded by bwinparty’s shareholders accepting GVC shares instead of cash, the paper said.
From valuing Bwin at 130p a share at the time of the bid, it has now fallen to just 116p. Meanwhile, shares in 888 have remained fairly steady, so its suggested cash and shares offer would still have been at the level of around 115p-116p, which was rejected by Bwin, the Independent reported.
Bwin officials, however, said they accepted GVC’s bid because they felt it would bring cost savings more quickly than 888’s offer. But many analysts have questioned the choice of such a small player as GVC over the larger 888.