(Alliance News) - Flutter Entertainment PLC on Wednesday said it would "vigorously" defend itself against Fox Corp after the US company sued in a dispute over a stake in FanDuel Group.
Shares in Dublin-based gambling firm Flutter were down 1.5% to 15,510.00 pence in London.
On Tuesday, Fox said it filed an arbitration suit against Flutter to enforce its right to buy an 18.6% stake in FanDuel, at the same price Flutter paid for the stake in December.
But Flutter said Fox's position is "incorrect" and that both companies agreed to a fair market valuation as of July 2021. It would be a "windfall to Fox" if Flutter sold the FanDuel stake at an USD11.2 billion valuation.
The dispute goes back to Flutter's merger with US gambling company The Stars Group in 2019. The deal gave Fox Sports, the media partner of The Stars Group, an option to buy a stake in FanDuel, a US gambling brand which was co-owned by Flutter.
According to Flutter's announcement of the deal in 2019, Fox Sports was given the right to buy the FanDuel stake "at its market value in 2021".
By Ivan Edwards; ivanedwards@alliancenews.com
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