November 23, 2016 / 3:07 PM / 2 years ago

UPDATE 3-Amaya's ex-CEO left seeking new funding to bid for firm

(Recasts; Adds details, names of Baazov’s other named backers)

* Shares up 0.8 percent after falling in earlier trade

* Baazov says still plans to acquire the company

* Baazov also says plans to seek alternative funding

* Dubai investor denied it was funding Baazov’s offer

By Matt Scuffham

TORONTO, Nov 23 (Reuters) - Former Amaya boss David Baazov said he would seek new funding for his C$3.65 billion ($2.7 billion) bid for the gambling firm, after an investor he had previously said was backing it turned out not to be.

The status of the offer, announced last week, fell into doubt after the Globe and Mail newspaper on Tuesday published an interview with Kalini Lal, the chief executive of investment firm KBC Aldini Capital, in which Lal denied that his firm had agreed to provide funds.

KBC was one of four investors named by Baazov as his backers. The others were the Head & Shoulders Global Investment Fund, Hong Kong-based Goldenway Capital and Ferdyne Advisory, which is registered in the British Virgin Islands.

Head & Shoulders Global Investment Fund and Goldenway Capital did not respond to requests for comment on Wednesday. Ferdyne Advisory could not be reached for comment.

Lal said KBC Aldini had filed a complaint with the U.S. Securities and Exchange Commission, which regulates Amaya in the United States. The regulator declined to comment.

Shares of Amaya rose 0.8 percent on Wednesday, having dropped 6 percent on Tuesday, after Baazov issued a statement saying he still planned to acquire the company.

Baazov said he had been advised by KBC that an equity commitment letter he received prior to submitting his proposal had been delivered without KBC’s knowledge. The statement also confirmed that KBC has not committed to provide financing.

“Baazov intends to obtain replacement financing and still currently intends to acquire Amaya on the terms previously disclosed by him on November 14, 2016,” the statement said.

Baazov, who already owns about 17 percent of Amaya, last week offered C$24 per share to acquire the rest of the company.

Amaya, which owns gambling websites PokerStars and Full Tilt, said in February it had received a non-binding proposal from Baazov to take the company private for C$21 per share.

However, two months after Baazov made that offer, he was charged with insider trading by Quebec’s securities regulator, and the company said he was taking an indefinite paid leave of absence. The charges followed an investigation into Baazov and other executives in 2014 for trading in Amaya’s stock ahead of its $4.9 billion takeover of PokerStars-owner Rational Group.

Amaya said in a statement after the market closed on Tuesday that it was continuing to “carefully assess” Baazov’s latest proposal.

$1 = 1.3482 Canadian dollars Reporting by Matt Scuffham; Editing by Bernard Orr

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