Australian gambling company Tabcorp on Monday formally rejected a $3 billion offer from the British owner of rival outfit Ladbrokes for its wagering and media division, deeming it too low.
FTSE 100 company Entain, which runs Bwin, Coral, Ladbrokes, PartyPoker, and Sportingbet, said in February that it was in “early stage” discussions with Tabcorp Holdings.
The company said: “This would present an opportunity to acquire an attractive business which, if combined with Entain’s existing Australian business, would create a leading, integrated multi-channel and multi-brand wagering company.”
Tabcorp, in an announcement to the Australian Stock Exchange, valued their wagering and media business at three billion Australian dollars, or £1.66 billion, and said the proposals fell short of expectations.
However suitor Entain remained upbeat on this Monday, saying that Tabcorp’s review would allow investors to compare its offer with a demerger, which it warned would be “simply the status quo option” for shareholders.
“Entain is confident an acquisition of the business represents the most attractive pathway to value realisation for investors and that its business is a clear and obvious choice as a strong, long-term partner for Australian racing,” an Entain spokesman said.