MGM Resorts drops bid for UK owner of Ladbrokes and Coral

Home / Betting & Gambling News / MGM Resorts drops bid for UK owner of Ladbrokes and Coral

The Las Vegas casino operator MGM Resorts will not pursue a takeover of the UK gambling company Entain, which owns brands such as Ladbrokes and Coral, after having an initial £8.1bn offer knocked back earlier this month.

MGM had until 1 February to make a firm bid under UK takeover rules, after it emerged that the casino business had made a proposal to buy Entain, with which it already operates a US joint-venture called BetMGM.

The US company said it had decided not to step up its interest “after careful consideration and having reflected on the limited recent engagement between the respective companies”.

City rules on takeovers mean MGM must now wait six months before it can return with a new offer.

Entain had dismissed the proposed £8.1bn takeover from its US partner, saying the bid “significantly undervalues” a business that some financial analysts have said is worth closer to £10bn.

Shares in Entain were trading at a level that implied MGM would increase its £8bn offer but the end of deal talks wiped 15% off the Entain share price on Tuesday afternoon, taking its stock market value down to £7bn.

“BetMGM, our US sports betting and online gaming venture with Entain, remains a key priority for the company as we continue to leverage our pre-eminent physical gaming, entertainment, and hospitality platform to expand digitally,” said Bill Hornbuckle, the chief executive of MGM Resorts International.

“We believe that BetMGM has established itself as a top-three leader in its markets and we remain committed to working with Entain to ensure its strong momentum continues as it expects to be operational in 20 states by the end of 2021.”

Entain said it “has a clear growth and sustainability strategy, backed by leading technology, that it is confident will deliver significant value for stakeholders”.

Investors have offered staunch support to Entain’s bid defence, believing that its international business, coupled with the exposure to the rapidly growing US market via BetMGM, will deliver continued growth.

Sources familiar with Entain’s discussions with investors said it would have taken a “knockout” bid to get the takeover done.

The casino firm is understood to be wary of going all-in with a huge offer now, given the uncertainty over Entain’s leadership, after its chief executive, Shay Segev announced his departure in the middle of the bid.

Instead, it could wait until a six-month cooling-off period mandated by City rules elapses, before considering another tilt at converting its BetMGM joint-venture with Entain into a full ownership interest.

MGM is mainly interested in using Entain’s technology and sportsbook expertise to take advantage of the rapid state-by-state rollout of sports betting in the US, triggered by the supreme court’s 2018 decision to overturn a decades-old ban.

But MGM would also be acquiring Entain’s international operations. An upcoming UK government gambling review could have a negative impact on Entain’s sizeable British division, adding another layer of uncertainty that undermines the rationale of a blockbuster offer.

Appetite has also been tempered by concern that a full-blown takeover tussle might strain relations in the BetMGM joint-venture. That ruled out the option of a “hostile” bid, where the potential buyer bypasses directors of the target company and goes straight to its shareholders.

One winner to emerge from the abortive takeover is the US investment manager Capital Group, which sold £35m-worth of shares after the emergence of MGM’s interest drove up the price. It could now buy them back for £30m and book a £5m profit.

MGM swooped for Entain earlier this month, after its US rival Caesars Entertainment bought William Hill for £2.9bn, underscoring the appetite for UK betting companies’ technology and experience in the newly regulated US gambling market.

Source

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Posts
English Premier League Players
  NamePositionAgeHeightWeight
1 Alisson Goalkeeper 28 191cm
1 Jack Butland Goalkeeper 27 196cm
1 Bernd Leno Goalkeeper 29 190cm
1 Kepa Goalkeeper 26 186cm
1 Hugo Lloris Goalkeeper 34 188cm
1 David de Gea Goalkeeper 30 192cm
1 Lukasz Fabianski Goalkeeper 35 190cm
2 Victor Lindelöf Defender 26 187cm
2 Joel Ward Defender 31 186cm
2 Winston Reid Defender 32 191cm
2 Matt Doherty Defender 29 185cm
2 Héctor Bellerín Defender 25 178cm
2 Antonio Rüdiger Defender 28 190cm
3 Patrick van Aanholt Defender 30 176cm
3 Fabinho Midfielder 27 188cm
3 Eric Bailly Defender 26 187cm
3 Sergio Reguilón Defender 24 178cm
3 Marcos Alonso Defender 30 188cm
3 Kieran Tierney Defender 23 180cm
3 Aaron Cresswell Defender 31 170cm
4 Andreas Christensen Defender 24 188cm
4 Toby Alderweireld Defender 32 186cm
4 Fabián Balbuena Defender 29 188cm
4 Virgil van Dijk Defender 29 193cm
4 Luka Milivojevic Midfielder 29 186cm
4 Phil Jones Defender 29 185cm
4 William Saliba Defender 19 193cm
5 Pierre-Emile Höjbjerg Midfielder 25 185cm
5 Harry Maguire Defender 27 194cm
5 Sokratis Defender 32 186cm
5 Georginio Wijnaldum Midfielder 30 175cm
5 James Tomkins Defender 31 192cm
5 Jorginho Midfielder 29 180cm
5 Vladimir Coufal Defender 28 179cm
6 Davinson Sánchez Defender 24 187cm
6 Thiago Silva Defender 26 183cm
6 Thiago Midfielder 29 174cm
6 Paul Pogba Midfielder 27 191cm
6 Scott Dann Defender 34 194cm
6 Gabriel Defender 23 190cm
7 Edinson Cavani Forward 34 184cm
7 Son Heung-min Forward 28 184cm
7 Bukayo Saka Midfielder 19 178cm
7 Andriy Yarmolenko Forward 31 189cm
7 N’Golo Kanté Midfielder 29 168cm
7 James Milner Midfielder 35 174cm
8 Dani Ceballos Midfielder 24 179cm
8 Naby Keïta Midfielder 26 172cm
8 Cheikhou Kouyaté Midfielder 31 189cm
8 Juan Mata Midfielder 32 170cm
8 Harry Winks Midfielder 25 178cm
9 Anthony Martial Forward 25 181cm
9 Alexandre Lacazette Forward 29 176cm
9 Roberto Firmino Forward 29 181cm
9 Jordan Ayew Forward 29 182cm
9 Saïd Benrahma Forward 25 172cm
9 Gareth Bale Forward 31 185cm
9 Tammy Abraham Forward 23 191cm
10 Andros Townsend Forward 29 181cm
10 Christian Pulisic Forward 22 172cm
10 Manuel Lanzini Midfielder 28 167cm
10 Mesut Özil Midfielder 32 180cm
10 Marcus Rashford Forward 23 185cm
10 Sadio Mané Forward 28 174cm
10 Harry Kane Forward 27 188cm
11 Mason Greenwood Forward 19 181cm
11 Wilfried Zaha Forward 28 180cm
11 Mohamed Salah Forward 28 175cm
11 Timo Werner Forward 24 181cm
11 Erik Lamela Forward 29 184cm
12 Willian Forward 32 175cm
12 Joe Gomez Defender 23 188cm
12 Mamadou Sakho Defender 31 187cm
12 Joe Hart Goalkeeper 33 196cm
13 Adrián Goalkeeper 34 190cm
13 Lee Grant Goalkeeper 38 193cm
13 Wayne Hennessey Goalkeeper 34 197cm
13 Rúnar Alex Rúnarsson Goalkeeper 26 186cm
13 Willy Caballero Goalkeeper 39 186cm
14 Fikayo Tomori Defender 23 184cm
14 Pierre-Emerick Aubameyang Forward 31 187cm
14 Joe Rodon Defender 23 193cm
14 Jean-Philippe Mateta Forward 23 192cm
14 Jordan Henderson Midfielder 30 187cm
14 Frederik Alves Defender 21 195cm
14 Jesse Lingard Midfielder 28 174cm
15 Jeffrey Schlupp Midfielder 28 178cm
15 Eric Dier Defender 27 188cm
15 Craig Dawson Defender 30 188cm
15 Ainsley Maitland-Niles Midfielder 23 180cm
15 Alex Oxlade-Chamberlain Midfielder 27 175cm
15 Kurt Zouma Defender 26 190cm
16 Rob Holding Defender 25 189cm
16 Mark Noble Midfielder 33 180cm
16 Edouard Mendy Goalkeeper 29 196cm
16 Marcos Rojo Defender 30 187cm
17 Moussa Sissoko Midfielder 31 187cm
17 Nathaniel Clyne Defender 29 175cm
17 Fred Midfielder 27 169cm
17 Curtis Jones Midfielder 20 185cm
17 Cédric Soares Defender 29 171cm
17 Mateo Kovačić Midfielder 26 177cm
18 Giovani Lo Celso Midfielder 24 177cm
18 Takumi Minamino Forward 26 174cm
18 Pablo Fornals Midfielder 25 178cm
18 Bruno Fernandes Midfielder 26 179cm
18 Olivier Giroud Forward 24 193cm
18 James McArthur Midfielder 33 178cm
18 Thomas Partey Midfielder 27 185cm
19 Mason Mount Midfielder 22 178cm
19 Stephen Henderson Goalkeeper 32 188cm
19 Nicolas Pépé Forward 25 183cm
20 Diogo Jota Forward 24 178cm
20 Shkodran Mustafi Defender 28 184cm
20 Dele Alli Midfielder 24 188cm
20 Callum Hudson-Odoi Forward 20 177cm
20 Christian Benteke Forward 30 190cm
20 Jarrod Bowen Forward 24 175cm
21 Daniel James Midfielder 23 170cm
21 Calum Chambers Defender 26 182cm
21 Ben Chilwell Defender 24 178cm
21 Angelo Ogbonna Defender 32 191cm
21 Connor Wickham Forward 27 189cm
21 Konstantinos Tsimikas Defender 24 179cm
22 Sergio Romero Goalkeeper 34 192cm
22 Pablo Marí Defender 27 193cm
22 Hakim Ziyech Forward 27 181cm
22 Paulo Gazzaniga Goalkeeper 29 195cm
22 James McCarthy Midfielder 30 180cm
23 Billy Gilmour Midfielder 19 170cm
23 Issa Diop Defender 24 194cm
23 Xherdan Shaqiri Forward 29 169cm
23 Michy Batshuayi Forward 27 184cm
23 David Luiz Defender 33 189cm
23 Steven Bergwijn Forward 23 178cm
23 Luke Shaw Defender 25 185cm
24 Ryan Fredericks Defender 28 181cm
24 Reiss Nelson Forward 21 175cm
24 Timothy Fosu-Mensah Defender 23 190cm
24 Reece James Defender 21 182cm
24 Serge Aurier Defender 28 176cm
24 Gary Cahill Defender 35 193cm
25 David Martin Goalkeeper 35 188cm
25 Eberechi Eze Midfielder 22 173cm
25 Mohamed Elneny Midfielder 28 179cm
25 Japhet Tanganga Defender 21 184cm
25 Odion Ighalo Forward 31 181cm
26 Arthur Masuaku Defender 27 179cm
26 Andrew Robertson Defender 26 178cm
26 Dean Henderson Goalkeeper 23 188cm
27 Tyrick Mitchell Defender 21 175cm
27 Divock Origi Forward 25 185cm
27 Lucas Moura Forward 28 172cm
27 Alex Telles Defender 28 181cm
28 Facundo Pellistri Midfielder 19 174cm
28 Tomas Soucek Midfielder 26 192cm
28 Joe Willock Midfielder 21 186cm
28 César Azpilicueta Defender 31 178cm
28 Tanguy Ndombélé Midfielder 24 181cm
29 Aaron Wan-Bissaka Defender 23 183cm
29 Kai Havertz Midfielder 21 189cm
30 Gedson Fernandes Midfielder 22 184cm
30 Eddie Nketiah Forward 21 180cm
30 Michail Antonio Forward 30 180cm
31 Ben Johnson Defender 21 175cm
31 Vicente Guaita Goalkeeper 34 190cm
31 Nemanja Matić Midfielder 32 194cm
31 Sead Kolasinac Defender 27 183cm
32 Joel Matip Defender 29 195cm
32 Emile Smith Rowe Midfielder 20 182cm
33 Emerson Defender 26 181cm
33 Ben Davies Defender 27 181cm
33 Matt Macey Goalkeeper 26 202cm
33 Brandon Williams Defender 20 172cm
34 Granit Xhaka Midfielder 28 186cm
34 Donny van de Beek Midfielder 23 184cm
34 Martin Kelly Defender 30 191cm
35 Sam Woods Defender 22 185cm
35 Gabriel Martinelli Forward 19 180cm
35 Darren Randolph Goalkeeper 33 187cm
36 Nathan Ferguson Defender 20 184cm
37 Danny Drinkwater Midfielder 30 177cm
38 Axel Tuanzebe Defender 23 186cm
39 Scott McTominay Midfielder 24 190cm
40 Karlo Ziger Goalkeeper 19 184cm
41 Declan Rice Midfielder 22 185cm
41 Alfie Whiteman Goalkeeper 22 188cm
44 Jairo Riedewald Midfielder 24 182cm
45 Carlos Vinícius Forward 25 190cm
46 Rhys Williams Defender 20 195cm
47 Nathaniel Phillips Defender 23 190cm
62 Caoimhin Kelleher Goalkeeper 22 188cm
66 Trent Alexander-Arnold Defender 22 180cm
72 Sepp van den Berg Defender 19 189cm
76 Neco Williams Defender 19 183cm