Private equity CVC Capital Partners, which owns Formula One, is reportedly eyeing online gambling group Betfair, according to reports.

Newspaper reports said that sources had disclosed that CVC's is in the early stages of preparing an offer for Betfair, and had hired an investment bank to assist it with its plan.

However, CVC had not yet approached Betfair, and is yet to secure financing, media reports said.

With speculations of a takeover, shares in Betfair, an online gambling exchange, climbed this year but it is still trading at almost half its 2010 listing price.

Both CVC and Betfair have not made any comment on the takeover reports.