GVC Holdings Once Again Increases Offer for Bwin.party: Talks ‘Very Positive’

(Reuters) - British online gambling company GVC Holdings Plc may increase its offer for rival Bwin.party Digital Entertainment Plc for a third time, a source close to GVC said on Thursday.

The source said GVC and Bwin had been in talks over the past week and that Bwin's response had been "very positive".

The talks centred around synergies between the two companies, according to the source, who declined to be identified because the matter is confidential.

The Times newspaper reported earlier on Thursday that GVC is ready to increase its offer to at least 130 pence per share, or about 1.1 billion pounds ($1.7 billion).

Bwin last month rejected GVC's initial 908 million pound offer in favour of a 900 million pound offer from rival 888 Holdings Plc.

Bwin said 888's offer carried fewer risks and had better prospects.

GVC has since raised its offer twice, first to about 1 billion pounds and then to about 1.03 billion pounds.

The Times said Bwin's board is scheduled to meet on Thursday to decide on GVC's increased offer. The board is expected to give 888 a grace period to make its own enhanced offer if it chooses GVC.

Bwin was not available for comment.

The tussle for Bwin is the latest in a flurry of merger activity in the industry, a trend likely to continue as firms seek to expand to offset increasing taxes and tighter regulation in Britain.

Shares in Bwin were up 1 percent at 114.7 pence at midday on the London Stock Exchange, while GVC was unchanged at 427.5 pence.