CVC looks to be lining up a potential bid for gaming exchange Betfair (BET), after the private equity company confirmed that it had held discussions over a possible move for the company, which has been struggling to implement a drawn-out turnaround plan. The talks don't amount to an official offer under the Takeover Code, but the market was impressed enough to bid the shares up 10 per cent.
The interesting part of CVC's announcement related to the involvement of Richard Koch in the talks. Mr Koch, who has a background in private equity going back to the early 1980s, provides a direct link to Betfair after backing the company early in its life and sitting on its board of directors until 2005. Mr Koch and CVC have to clarify their position on official talks by 13 May 2013.