An offer of £912 million from CVC Capital Partners and partner investors has been rejected by betting firm Betfair.

The online site said that an offer at 880 pence per share “fundamentally undervalues” the business.

Investors partnered with CVC include Richard Koch who already owns a 6.5 percent stake in Betfair.

Chairman Gerald Corbett said: “We have a unique business with a market position, profitability, cash flow and prospects that this proposal fails to recognise."

The company will now move to enact costs savings and develop its market performance, with shares opening up at 818 pence.

CVC enters into talks on Betfair takeover