Bidding War Party for Bwin ContinuesPublished September 3, 2015 by Lee R
A deal signed weeks ago between 888 to purchase Bwin.Party now has two more bids.
The battle for Bwin is solidly ongoing.
888 Steps Up—Again
After being outbid on its signed agreement to purchase online gambling provider Bwin, 888 is not backing down.
Instead, 888 has upped the stakes in the spurious bidding battle with GVC to the £1.1 pound level. According to Bwin, 888 has revised its takeover proposal as of Tuesday. The poker, bingo and sports betting provider Bwin, which offers poker, bingo and sports betting online, is now evaluating the bid against the prevailing high offer from Sportingbet Owner GVC.
The process took on a strong aura of, shall we say, unorthodoxy when Bwin accepted a higher offer from GVC after signing an agreement for 888 to purchase the company. The resulting auction-style process now has the entire iGaming industry befuddled as to how this is supposed to end.
The new terms remain undisclosed. What is known is that that 888 has increased the paper element of its offer to life the value of the new bid to 115p a share. Other pre-conditions are thought to include an increase in the break fee to about 1pc of the overall deal value, which has implications for shareholders.
The new restructured offer affirms that 888 is willing and able to keep bidding even after being deprived of a previously signed agreement. Why 888 is not protesting the original deal`s apparent nullification is not clear. What is clear is that after having made its most cash-and-shares bid just last Friday evening, which GVC claims values Bwin at 131p a share as is, the only way that GVC can stay in this horserace now is to structure their deal as a reverse takeover.
The GVC offer further is according to a GVC spokesman devoid of conditions which 888 has introduced, according to a GVC spokesman. What these conditions are is unknown in this unorthodox selling process by which Bwin has let this auction continue. Can a billion dollar corporation be sold according to the 15-minute rule? Stay tuned to find out, as Bwin consults key shareholders to weigh the two competing proposals.