Share price plunges for Ladbrokes owner Entain as MGM boss quashes takeover speculation
Shares in gambling group Entain plunged this morning after the boss of potential suitor MGM quashed talks of a possible takeover.
The FTSE 100 Ladbrokes owner and US resort giant MGM currently operate a US joint venture BetMGM, which has seen bumper growth and is expected to start delivering profits later this year.
The bumper performance had fuelled rumours of a potential takeover of Entain, but boss of MGM Bill Hornbuckle ruled out the move on a call with analysts following fourth quarter earnings.
“I think it’s time to be definitive and give a little direction. The simple answer on Entain is ‘no’, we’ve moved on,” he told investors.
The comments sent the FTSE 100 firm plunging beyond 12 per cent in early trading. Shares have since recovered to trade down around 10 per cent.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said any speculation of a takeover had now been “shut down”.“
BetMGM, Entain’s joint venture with US-based MGM, has been a shining light for the group that’s expected to start turning a profit over the second half of 2023 and that’s partly why the rumour mills have been whirring,” she added.
Ladbrokes declined to comment.