Stock Groups

Entain Says It’s Studying Improved Bid From Draftkings By


© Reuters

By Geoffrey Smith — 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:). 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. CFDs include futures, stocks, indexes and Forex. Prices are provided not by the exchanges. They are created by market makers. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.