MGM Resorts pulls out of deal for UK bookmaker Entain

MGM Resorts International (NYSE:MGM) confirmed on Tuesday it does not intend to make a revised proposal and will not make a firm offer for Entain (LON:ENT), after the UK sports betting and gaming group previously rejected its proposal.

Entain, a component of the FTSE 100, has a portfolio of big-name brands in the sports betting and gaming world, including Ladbrokes, Coral, bwin, and partpoker. They rebranded in December last year, making the switch from GVC Holdings and currently operate in over 20 countries, including the UK and the US.

Alongside the announcement, MGM said they remain committed to being a premier global omni-channel gaming and entertainment company and will maintain a disciplined framework while evaluating a range of compelling strategic opportunities.

News of a potential takeover by MGM Resorts first broke in early January, prompting Entain to release a statement saying the £8bln proposal significantly undervalued the company and its prospects. However, they did not completely rule out a deal, inviting MGM to provide strategic rationale for a combination of the two companies.

Entain share price fell on the latest news and at 13:45GMT, Entain shares are down 15.5% at GBP 11.95.