Shares in Ladbrokes owner Entain plunge as MGM pulls takeover offer
Shares in Ladbrokes owner Entain took a plunge today after MGM withdrew its takeover offer.
The betting group, which also owns brands such as Coral, Bwin and Partypoker, had rejected an £8bn bid from MGM, saying it “significantly undervalues the company”.
But casino giant MGM today said it would not submit a revised proposal and would not make a firm offer for Entain.
Shares in Entain dropped as much as 17 per cent following the news and ended the day down 12.6 per cent to 1,235p.
“Bet MGM, our US sports betting and online gaming venture with Entain, remains a key priority for the company as we continue to leverage our preeminent physical gaming, entertainment, and hospitality platform to expand digitally,” MGM chief executive Bill Hornbuckle said in a statement.
“We believe that Bet MGM has established itself as a top three leader in its markets and we remain committed to working with Entain to ensure its strong momentum continues as it expects to be operational in 20 states by the end of 2021.”
Entain said it had “a clear growth and sustainability strategy backed by leading technology” and was confident it could deliver value for stakeholders.
“We look forward to continuing to work closely with MGMRI to drive further success in the US through the Bet MGM joint venture,” the company added.
The decision marks the latest twist in a tumultuous period for Entain, which was formerly known as GVC.
In a shock announcement last week chief executive Shay Segev said he would step down after just seven months in the role to join sports streaming platform DAZN as co-chief executive.
Entain is now preparing to appoint board member Jette Nygaard-Andersen as its new boss, Sky News reported.
If confirmed, the appointment will mark the first time a major British listed gambling group has had a female boss.
Entain has also agreed a deal to buy Swedish rival Enlabs for £250m.