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Sept 21 for clarification
HaEntain confirmed on Tuesday that DraftKings had approached the company with a $22.4bn proposal to acquire the group, but U.S. partner MGM Resorts quickly warned both companies that any deal requires its approval first.
“MGM is Entain’s exclusive partner in the U.S. online sports betting and iGaming market through our highly successful 50/50 joint venture BetMGM LLC,” the Las Vegas-based gaming company said in a statement released shortly after Entain confirmed reports of an approach from DraftKings.
“As a consequence, any transaction whereby Entain or its affiliates would own a competing business in the U.S. would require MGM’s consent.”
Entain shares rose 18 percent Tuesday after the companies confirmed that Boston-based DraftKings had made a surprise offer for the London-listed operator.
The proposed offer in cash and equity was first reported to be worth around $2obn by the business news network CNBC in New York.
In a statement on Tuesday evening, however, Entain said an initial DraftKings offer of 2,500p per share was rejected and the Boston-based company returned with the latest proposed offer made on September 19 of 2,800p per share, about a quarter of which is payable in cash and the remainder in newly-issued DraftKings shares.
Entain said it would “carefully consider the proposal.”
That price, about a 45 percent premium on Monday’s closing price, would dwarf the $11bn offer by MGM which was rejected in January by Entain.
MGM still has designs at least on Entain's stake in the U.S. BetMGM venture, with CEO Bill Hornbuckle telling a JP Morgan investor forum earlier this month that “we do critique ourselves for giving up 50 percent of the business.”
On Tuesday, MGM said in its statement that the company “believes that having control of the BetMGM joint venture is an important step towards achieving its strategic objectives.”
MGM also said it would engage with both Entain and DraftKings, as appropriate, to find a solution to the exclusivity arrangements regarding BetMGM which meet all parties’ objectives.
Truist Securities analyst Barry Jonas said he could see DraftKings' approach for Entain as a positive for MGM if the Nevada company was able to walk away owning 100 percent of BetMGM.
“While MGM could still offer a competing bid for all of Entain, we think it makes more sense for them to just buy Entain’s 50 percent share of BetMGM,” Jonas wrote in a research note. “MGM owning all of its online business would be a clear long-term positive, in our view, though price would obviously be an important factor.”
Entain stock rose to 2,261 pence per share, an all-time high for the parent company of the Ladbrokes, Coral, bwin and PartyPoker brands. In contrast, DraftKings shares lost $4.23, or 7.42 percent, to close at $57.22. per share on the Nasdaq.
Entain shares rose almost a further 10 percent on Wednesday morning in just the first 10 minutes of trading on the Londo
So the speculation is only from you.
January 2021, Entain turned down a takeover approach from MGM worth 1,383p per share at the time or around £8.1bn
Now is surely a time to make another approach
I haven't seen or heard of speculation being rife, as you call it. Could you direct me to where this is happening.
This could hit 10 pounds before the day is out.
Ceo s stand down when asked to do so by the chairperson but why? Well sp has tanked under her tenure that is usually enough . Who knows what else?
Share price has halved in a year, it's only natural that takeover speculation is rife.
What speculation about a take over ?
£25 was rejected when draft kings were interested. It’s definitely an option but I’m now biased as I’m now back in…
It seems the speculation about a takeover bid is driving up the share price. A 7 per cent in one day is unprecedented.
Open to a bid at this price ?
True, I normally mess it up!
A 12 per cent jump in the sp in 2 days is enough for me to sell. Don't want to get greedy.
Hopefully new CEO announced fairly quickly to keep things stable. Who knows maybe another bid, £9 still feels cheap!
Sidi
I think you mean PE instead of eps
Market Screener has GSK on a forecast PE of 10
And the forecast PE for AZN is far less than 58
Anyway I still say Entain is very overvalued when compared to 888
Entain forecast PE is about 15 and 888 forecast PE is about 3
How do you like that?
Lol Lol Lol
Thanks! Hopefully upwards momentum now CEO gone as well!
*you 🙂
Not bad timing that ..Nice little bounce for yiub
Thought the CEO was untainted by the Turkish behaviour of the previous management so why is she going now ? Would appreciate being enlightened
That's a very simplistic reliance on the P/E ratio - why not just build a portfolio by buying the 15 most lowly rated companies
Well, well. Our less than impressive CEO has "stood down". Here's to a better future.
Hopefully £8 the bottom, decided to take the plunge today!! Some concerns on regulation still but looks massive potential in future especially now fine resolved and recent director buys!
Asartara, well, GSK's EPS is only 3.9 and AZN's EPS is 58! Guess which one has more buyers?
Yes, more investors buys AZN. What do you say about that then? Lol
Why would anyone buy Entain on a forecast PE of 15 when they can buy 888 William Hill on a forecast PE of 3 ?