Entain shares are topping the FTSE 100 after rising 28% and hitting a record high of 1,455p this morning.
It comes after the owner of the Ladbrokes and Coral betting brands said on Monday an £8bn takeover bid from its US joint venture partner MGM Resorts International significantly undervalued the business, Jasper Jolly writes.
Entain said the offer by MGM, the owner of the Bellagio casino in Las Vegas, undervalued the British group, and questioned the rationale for a merger, in a statement to the stock market on Monday morning.
The offer equated to a value of 1,383p per Entain share, a 22% premium to the 1,133.5p price on New Year’s Eve, the last trading day before the bid was first reported.
It values the UK company at about £8.1bn. MGM was also willing to make a partial cash offer, Entain said. Entain shareholders would own 41.5% of the enlarged group.