Betfair, the online gambling company, has rejected a US$1.4 billion takeover bid from CVC Capital Partners, the private equity firm. Betfair said the bid was 'too low' and 'had too many conditions.'

The offer was made by CVC, which is currently the largest shareholder in Formula One racing. The bid was priced at 880 pence per share valuing the company at GBP912 million or US$1.4 billion.

Before the bid, Betfair shares were traded at 700 pence and after the CVC offer, share values jumped by 839 pence. There was a discount included in the terms offered by CVC, indicating that the takeover drama was just about to start.

The online gambling sector has been growing by leaps and bounds. Founded in 2000, the company operates a system where gamblers can bet against one another, removing the bookie from the transaction.

Current CEO Breon Corcoran has undertaken a restructuring plan to cut costs as well as pull out of problematic countries such as Germany and Greece, where regulation is unclear or taxation rates are too high.