Gambling website Betfair backed its “unique” business and prospects as it rejected a takeover approach worth £910 million.
The bid from CVC Capital Partners the buy-out group behind Formula 1 motor racing was rejected by Betfair on valuation grounds.
CVC disclosed last week that it has held talks with other investors, including existing Betfair shareholder and entrepreneur Richard Koch, about a possible joint approach for the online betting exchange.
The subsequent proposal from CVC valued the firm’s shares at 880p, compared with the 1300p seen on its stock market debut in 2010.
Betfair says it is going through one of the “most exciting phases in its development”, thanks to a new strategy revealed in December and the appointment of a new management team led by chief executive Breon Corcoran.
“We have a unique business with a market position, profitability, cash flow and prospects that this proposal fails to recognise,” chairman Gerald Corbett said.
Betfair’s betting exchange works by matching punters and allowing them to bet against each other, which it says eliminates the need for a traditional bookmaker.
The company processes seven million transactions a day, taking a commission on each. CVC owns luggage firm Samsonite and also has stakes in Brit Insurance and theme park giant Merlin Entertainments.