Betfair
Revenues £477m Ebitda £120m
When a couple of significant investors who have been long-term shareholders suddenly offload a big chunk of their holdings, it is often regarded as signal to others to follow suit. When, as in the case of Betfair, those sellers are collecting a cool £260 million and one of those sellers is a co-founder, then it starts to set alarm bells ringing.
The near-3 per cent fall in the Betfair share price yesterday as the market digested Monday’s after-hours announcement of the proposed share placing by Barclays was a natural reaction. The question is: should smaller investors follow the lead of Edward Wray and Le Peigné, the investment vehicle of the LVMH tycoon Bernard Arnault?
It is pertinent to ask why