A possible £1bn takeover of Betfair fell through on Monday evening once the gambling group cancelled discussions with private equity suitors. 

The change came after the company had been given a 24-hour extension to a deadline at 5pm Monday to finish the talks, in a move that would be seen to suggest a deal with a consortium fronted by CVC Capital Partners could be near. 

Although, Betfair stated that a £985m cash offer late on Monday that was pitched at 950p per share, by the consortium that includes Betfair shareholder Richard Koch was not high enough.

It was stated by the Betfair chairman Gerald Corbett that the board has given a considerate amount of time going over the different proposals that include detailed discussions with the co-offers’.  He goes no to say that the board came to the conclusion that none of these proposals represent a good enough value or adequate execution risk.

Monday was to be the cut-off point set by the Takeover Panel for CVC to either raise the £912m bid from April or withdrawal.  Either action should have taken place once Betfair declined the first 880p per share approach because it is made the company fundamentally undervalued.

Once trading as high as 947.5p during the day on Monday, Betfair shares close at 3p at 895p.