Betfair founder backs its board

Betfair has rejected the deal. Photograph: Graham Turner for the Guardian

The co-founder and second largest shareholder in Betfair has backed the company's rejection of a 920m takeover private equity approach.

Edward Wray, who created the betting exchange along with Andrew Black in 2000 and who still holds 11% of the shares, also reiterated his support for the group's new chief executive, Breon Corcoran.

Wray said: "I'm not entirely surprised the board has rejected it, to be honest … I think Breon is doing a good job."

Black, who owns about 8% of the company, is also said by friends not to be interested in selling.

Betfair rejected a takeover approach from a consortium led by private equity group CVC Capital Partners, arguing the 880p-a-share offer undervalued the company. The approach represented a 9% premium to the shares' closing price on Friday. CVC's plan, which is backed by Betfair shareholder Richard Koch, is complex and involves the creation of a new company and issuing new shares and loans to existing shareholders as part of the deal. It is also conditional on due diligence.