The share prices of Bwin.Party Digital Entertainment and GVC Holdings, which won the bidding war for the former early this month, have fallen significantly in the weeks since the deal was reached, and that has cast “doubt” over the takeover, according to a report from The Independent.
The decline in GVC stock has made it so the deal Bwin rejected from rival online gambling firm 888 Holdings is nearly identical. Bwin originally accepted a deal from 888, but then nixed it in favor of a richer deal from GVC, an Isle of Man-based sports betting and online gaming company.
The winning deal was worth roughly $1.62 billion USD.
According to the report, investors bought £150 million of new stock in GVC as part of its financing for the deal. Its shares have fallen roughly 11 percent since the deal. That’s roughly the same decline for Bwin shares.
Both the GVC and 888 offers contained cash and shares.
