GMVHF - Ladbrokes Owner Entain receives $11B takeover offer from MGM - WSJ
The U.S. casino operator MGM Resorts (MGM) has proposed £8B (~$11B) in a bid to takeover Entain (GMVHF), the owner of the Ladbrokes and Coral betting brands - WSJ.However, the British gaming company says that the offer “significantly undervalues” the company.As per the proposal, investors in the U.K. group would receive 0.6 MGM shares, valuing their Entain shares at 1,383p — a 22% premium to its closing price of 1,133.5p on Dec. 31, 2020.Entain has also asked MGM to provide additional information in respect of the strategic rationale for a combination of the two companies.Shares in Entain, previouly know as GVC, jumped more than 25% when the market opened Monday, making it the biggest riser on the FTSE 100.MGM may also offer a “limited partial cash alternative” to Entain shareholders, who would own about 42% of the combined business.MGM’s shares ended the year down about 5% while Entain’s closed up around 30%,
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Ladbrokes Owner Entain receives $11B takeover offer from MGM - WSJ