US casino giant MGM Resorts has tabled an $11 billion bid for Entain, the owner of Ladbrokes, Corals, and the PartyPoker brand.
The bid is the latest move by the big gambling operators as the sector consolidates.
But Entain says the offer of 1,383 pence per share significantly undervalues its business – despite being 22% higher than the price’s previous stock market close.
Transatlantic partnerships are gaining speed. Caesars Entertainment’s £2.9 billion deal with William Hill, owner of the William Hill Casino, William Hill sports and poker brands announced last December.
The US is seen as the next big target for growth, especially for sports betting and online casino, as online gambling is legalised in ever more States.
Entain, which was renamed from GVC last month, is British based. It spawned from the former PartyGaming empire, which merged with BWIN before going on to take in Ladbrokes and Coral.
The consolidation trend in the casino and sports betting sector is gathering steam, with The Stars Group, owner of the PokerStars poker brand, taking over Sky Bet and then joining forces with Flutter, owner of Paddy Power and Betfair.
With Entain already saying the offer price is too low, it’s unlikely to recommend the deal to its shareholders and MGM Resorts will have to come back to the table.