Betfair rejects takeover bid by CVC Capital Partners

Betfair, the British exchange-wagering company that owns TVG in the United States, has rejected a preliminary takeover bid made by a venture-capital firm, the company announced Monday.

The company’s board reviewed the offer from CVC Capital Partners with several advisers, including Goldman Sachs and Morgan Stanley, but it said the offer “undervalues the company and its attractive prospects, and is highly conditional.” The CVC offer was backed by several prominent Betfair shareholders.

“We have a unique business with a market position, profitability, cash flow, and prospects that this proposal fails to recognize,” Gerald Corbett, chairman of Betfair, said in a statement.

CVC, which owns Formula One racing, announced that it had made the offer April 15. The offer would have valued Betfair at $1.4 billion. The company currently has a market cap of approximately $1.1 billion.

Betfair operates the most popular exchange-wagering site in the world. It has lobbied for authorization to conduct exchange wagering in the United States.