Entain's shares tumble as MGM scraps buyout plan
Reuters
Published Feb 09, 2023 04:25AM ET
Updated Feb 09, 2023 10:43AM ET
(Reuters) -Shares of Entain plc tumbled as much as 13% on Thursday after U.S-based MGM Resorts (NYSE:MGM) International said it had "moved on" from pursuing an offer for the British gambling firm.
Although MGM remains focused on online sportsbook BetMGM - its joint venture with Entain - it saw great potential in expanding LeoVegas, a Swedish online gaming company it bought last year, MGM Chief Executive William Hornbuckle said on Wednesday.
While Entain rejected a takeover approach worth roughly $11 billion from MGM back in 2021, there has been market chatter about another attempt from the casino operator to buy Entain or its North American operations.
"So, for now, the answer is no, not within Entain," Hornbuckle said.
"We're going to go down our own direction as we begin to allocate capital."
Entain's shares fell as much as 13% to a more-than-one-month low of 1365.5 pence in morning trade.
Entain said earlier this month it would end its financial support for BetMGM once that business turns profitable.
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Written By: Reuters
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