Ladbrokes owner says MGM's $11 billion takeover bet undervalues company

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Ladbrokes owner Entain said on Monday that an $11 billion takeover approach from U.S. casino operator MGM Resorts significantly undervalued its business, as companies move to capitalise on an expected boom in U.S. sports betting.

FILE PHOTO: The Circus Circus hotel and casino is seen along the Las Vegas strip after MGM Resorts International announced it was selling the resort and the Bellagio in separate deals in Las Vegas, Nevada, U.S. October 15, 2019. REUTERS/David Becker

MGM’s proposed offer of 1,383 pence per Entain share implies a deal value of 8.09 billion pounds , according to Reuters calculations, representing a 22% premium to Entain’s last close. “Entain is a far more global and more integrated operation – operating online gaming sites around the world as well as a high street estate. That makes folding the non-US operations into MGM or spinning them off separately a far greater challenge,” Hargreaves Lansdown analyst Nicholas Hyett said.Entain said it received multiple proposals from MGM, with the latest one being MGM’s offer of 0.6 of its shares for each Entain share. Under the proposal, Entain shareholders will own about 41.

 

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