MW Entain shares surge for second day on increased DraftKings offer for MGM partner
By Steve Goldstein
The FTSE 100 climbed above the 7,000 level again Wednesday on hopes around a possible resolution to the China Evergrande crisis
Entain shares surged for a second day on Wednesday on the London stock market as the sports-betting company disclosed that DraftKings increased its offer.
Entain shares rose 8% to 2433 pence as it said DraftKings increased its cash and stock offer to 2,800 pence from 2,500 pence. Entain shares surged 18% on Tuesday, when it first disclosed the DraftKings $(DKNG)$ interest.
Entain -- which runs the BetMGM joint venture with MGM Resorts in the U.S. in the fast-growing sports betting market -- said it will "carefully consider the proposal." MGM $(MGM)$ in January had tried to purchase Entain.
"MGM will have a hand in negotiating the terms of the deal, which could ultimately put DraftKings off following through. There's also a chance DraftKing's bold move could push MGM to make another offer for Entain, though we think this possibility is unlikely considering it would require MGM to substantially increase its former offer," said Laura Hoy, equity analyst at Hargreaves Lansdown.
Flutter Entertainment was another mover in London, climbing 4% as it settled with Kentucky by paying a $200 million payment, in addition to the $100 million previously forfeited, to settle a long-running dispute over poker services. Flutter also held an investor presentation showcasing Sportsbet, its Australian division. Flutter says sports betting only accounts for 17% of the Australian gambling market.
The FTSE 100 climbed 1.3% to 7,069.53 -- again crossing the 7,000 level -- on hopes around a possible resolution to the China Evergrande crisis, after the company said that it won't default on its yuan obligations. Evergrande creditor HSBC Holdings rose 4%, as did Asia-focused bank Standard Chartered .
Miners also rose, led by copper miner Antofagasta .
-Steve Goldstein
$(END)$ Dow Jones Newswires
September 22, 2021 08:16 ET (12:16 GMT)
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