Internet betting group Playtech's attempt to buy spread betting group Plus500 is being objected to by the company's largest shareholder, who calls the deal exploitative.
Plus500's largest share holder Odey Asset Management said that the Playtech acquisition deal of £459.6 million is less than half of the value that the company values Plus500 at. Playtech originally announced it had come to an agreement to purchase the company just two days after the United Kingdom required the firm to freeze UK accounts due to anti-money laundering checks.
Despite Odey Asset Management's protests, they do not have a large enough chunk in the company to prevent a takeover, as only 50.1% of shareholders need to approve the deal in order for it to go through.
Voicing their objections Odey Asset Management Founding Partner Crispin Odey said, "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. However, for independent shareholders we believe the current offer represents too great a discount compared to intrinsic valuation as a standalone entity."