888 out, GVC in as merger partner for bwin.party

[The Buzz]

Big news this morning, as bwin.party has announced that GVC's £1.12 billion bid is its preferred offer, and 888 is no longer pursuing a merger.

Full story from the New York Times: http://www.nytimes.com/2015/09/05/bu...deal.html?_r=0

“The 888 board has concluded that, as a result of its own extensive due diligence on bwin.party, it cannot see sufficient value in bwin.party to warrant a revision to its offer,” 888 Holdings said in a news release. “Consequently, 888 confirms that it is no longer in discussions regarding the acquisition of bwin.party.”

Under the terms of GVC’s latest offer, Bwin.Party shareholders would receive the equivalent of 129.64 pence in cash and shares for each of their shares. That represented a 45 percent premium to its closing price on May 14, the last day before GVC first announced its takeover approach.

Other important things to note: bwin.party CEO Norbert Teufelberger will serve as the nonexecutive director of the combined company's board; bwin.party shareholders will receive 25 pence a share in cash as well as 23.1% of their shares in the merged company (so a shareholder with 100 shares in bwin.party would receive £25 and 23.1 shares), and bwin.party shareholders will own 2/3rds of the new company; the deal is subject to shareholder approval . . . directors of bwin.party say they unanimously support the agreement.