StockMarketWire.com - Ladbrokes owner Entain said a proposed merger offer of about 1,383 pence a share from MGM Resorts International undervalued the company.

Under the terms of its most recent proposal, MGM Resorts would offer 0.6 MGMRI shares for each Entain share, which based on closing prices on 31 December 2020, represented a value of 1,383 pence per Entain share and a premium of 22% to the company's share price.

Under the terms of the proposal, Entain shareholders would own approximately 41.5% of the combined business.

Entain said it had 'informed MGMRI that it believes that the proposal significantly undervalues the company and its prospects.'

'The board has also asked MGMRI to provide additional information in respect of the strategic rationale for a combination of the two companies,' it added.

Under market rules, MGM Resorts must make an offer or walk away by no later than 5.00 p.m. on 1 February 2021.







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