egr magazine quote4 Dec 2012 00:00
Sportingbet’s senior directors held crunch talks with their William Hill counterparts this weekend in an attempt to salvage a £508m bid for the company following news last week that its first quarter revenues had slumped 35%, eGaming Review has learned.
With just 24 hours to go before a bid must be lodged or an extension is agreed for a third time, sources close to the matter told eGR this afternoon that despite William Hill’s strong desire to acquire Sportingbet’s lucrative Australian business CEO Ralph Topping (pictured) is “not keen to overpay” following last week’s “disappointing” trading statement.
It is understood that Topping and a number of his key allies this weekend attempted to drive down the original 61.1p a share offer. The original price, made before a second extension deadline was agreed and expires at 5pm tomorrow, comprises 48.9p in cash, a 1.1p dividend declared by Sportingbet and the rest in GVC Holdings paper, valuing the group at £408m, or £530m including Sportingbet’s convertible bonds and share options.
The source told eGR that an offer could still be on the table but that it would be “much lower than the original 61.1p [per share]”.