Playtech’s Acquisition of Spread Betting Firm Opposed by Major Shareholder

Spread betting firm Plus500's largest shareholder plans to oppose Playtech's bid to acquire the company describing it as opportunistic and an exploitation of current regulatory issues and risks. Playtech submitted its bid with days of the UK Gaming Commission's rejection of Plus500's anti-money laundering checks, which required it to freeze UK customer accounts and resulted in the decline of its share value. "We understand that this cash acquisition may make sense for Plus500's management and staff, whom we expect could be further incentivised by Playtech after the acquisition has completed,” Crispin Odey, founding partner of Odey Asset Management told Business Insider. “However, for independent shareholders we believe the current offer represents too great a discount compared to intrinsic valuation as a standalone entity." Israeli takeover law requires the approval of 50.1 percent of shareholders. A total of 35 percent of company stock is currently held by Plus500's management making it unlikely that the deal will go through.