Picture: REUTERS
Picture: REUTERS

US casino operator MGM Resorts International said it decided not to make a firm offer for Entain after the UK gambling company dismissed its takeover attempt for about $11bn. Entain shares slumped as much as 20% in London.

Under the proposed terms, Entain investors would have exchanged stock for 0.6 of a share of MGM and would have held about 42% of the combined business. In a statement Tuesday, MGM said that “after careful consideration and having reflected on the limited recent engagement between the respective companies regarding MGM’s rejected all stock proposal,” it did not plan to submit a new offer.

A merger would have given MGM full control of its US joint venture with Entain at a time when the industry is seeing dramatic growth. The US sports betting market alone is expected to quintuple in size to $8.4bn by 2024, according to the consulting firm Vixio Gambling Compliance.

“MGM … will maintain a disciplined framework while evaluating a range of compelling strategic opportunities,” according to the statement.

MGM shares rose as much as 6.7% in early US trading. Entain was down 17% to 1,179.50p in London.

Bloomberg

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