Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
Does seem strange we compete in UK with MGM, agree we’ve been out manoeuvred….
MGM advertising and offers everywhere, inc PL football and ENT agree to boycott this with other big players!!
9% drop in 2 days ouch!!!
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