he high-stakes pursuit of Ladbrokes owner Entain looks set to be the main focus for London investors today after the FTSE 100 index company confirmed an approach from DraftKings pitched at £28 a share, equivalent to more than $22 billion. It has said it is considering the move proposal amid interest in its US sports betting operation.
The FTSE 100 index, meanwhile, is set to open slightly higher after Turnaround Tuesday saw it rebound from China jitters to close more than 1.1% higher.
Ladbrokes owner mulls DraftKings approach
Ladbrokes and Coral owner Entain today added more detail on the takeover approach from DraftKings, revealing that the proposal from the US online gaming firm is worth £28 a share, equivalent to more than $22 billion.
This represents a sizeable 46% premium to Monday night’s closing price, but DraftKing faces a significant hurdle in Entain’s US partner MGM Resorts International, which made its own takeover approach earlier in the year.
The latest proposal from DraftKings, which follows an earlier approach pitched at 2,500p a share, offer the FTSE 100 company’s shareholders 630 pence in cash with the rest coming from new DraftKings Class A common shares.
Entain said: “The board of Entain will carefully consider the proposal and a further announcement will be made as and when appropriate. Shareholders are urged to take no action at this time.”
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