MGM Withdraws From Entain Takeover Bid
MGM’s initial bid of $11bn (£8.1bn) was described by Entain as “significantly” undervaluing the company but MGM Resorts decided against an increased offer, instead pulling out of any potential deal.
US casino giants, MGM Resorts, has ended its takeover bid of betting operator, Entain having had a previous bid rejected by the FTSE 100-listed firm two weeks ago.
MGM’s initial bid of $11bn (£8.1bn) was described by Entain as “significantly” undervaluing the company but MGM Resorts decided against an increased offer, instead pulling out of any potential deal.
Entain, formerly known as GVC Holdings, describes itself as "one of the world's largest sports betting and gaming groups operating in the online and retail sector” and currently owns household brands including Ladbrokes, Coral, Bwin, Eurobet, Partypoker, Gala and Foxy Bingo. The takeover bid from MGM Resorts was an attempt for the US firm to move into the online betting business – a move undertaken by rival casino giant, Caesars Entertainment following their completion of a $3.7bn (£2.9bn) takeover of William Hill a few months ago.
Following MGM’s withdrawal from takeover talks, Entain shares slumped more than 20% on Tuesday.
