CORRECTED-UPDATE 3-Gambling firm GVC raises offer to $1.6 bln for rival Bwin.party (July 27)
(Corrects paragraph 4 of July 27 story to say that the company has cut costs, not struggled with cost savings)
* GVC makes 122.5p/share offer for Bwin
* Says Cerberus Capital to provide 400 mln-euro loan
* Cost savings to exceed 135 mln euros per annum
By Aastha Agnihotri and Neil Maidment
LONDON, July 27 (Reuters) - Online gambling firm GVC Holdings returned on Monday with a new 1 billion-pound ($1.55 billion) bid for rival Bwin.party Digital Entertainment , looking to trump a recently accepted offer from 888 .
Bwin, put up for sale last year, accepted a cash and stock deal worth almost 900 million pounds from online casino and poker firm 888 this month, shunning an earlier 908-million-pound offer from GVC and Canada's Amaya Inc, which it deemed too complex and with less attractive growth prospects.
The tussle for Bwin is the latest in a flurry of merger activity in the industry, a trend likely to continue as firms seek to expand to offset increasing taxes and tighter regulation in Britain. Last week Ladbrokes and Gala Coral agreed a $3.4 billion all-share merger.
Bwin, which has struggled with the decline of regulated poker markets in Europe and has cut costs since its creation via a merger of sports betting group Bwin and online poker group PartyGaming in 2011, confirmed on Monday that it had received a new offer from GVC and would respond in due course. Continued...