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Entain Says It’s Studying Improved Bid From Draftkings By Investing.com

by Mike Robinson

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© Reuters

By Geoffrey Smith 

Investing.com — U.K. betting group Entain (LON:) said it’s considering an improved offer of 2,800 pence a share from U.S. group DraftKings (NASDAQ:), after rejecting a first bid of 2,500p as too low. 

It is a mix of cash and stock offering. The offer includes 630p in cash, the remainder in Draftkings shares. Entain’s total value is 46% higher than Monday’s closing price. After the news about the initial offer, Entain shares rose 18% to close at 2,261p on Tuesday. 

Entain stated that it would closely examine the offer and recommend shareholders not take any action right now. 

It is the latest in a hot sector, which has witnessed a lot of deals in recent years. U.K.-based gambling companies with a long history and well-established technology platforms are attractive partners in a U.S. sector that is growing rapidly due to liberalizing its gambling laws. 

Entain, which operates the Ladbrokes (LON:) and Coral brands in the U.K., already has a joint venture in the U.S. with MGM Resorts (NYSE:). 

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