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MGM International Dumps $11 Billion Entain Takeover Bid

MGM International said Tuesday it will not make firm bid for Entain after the U.K. bookmaking and gaming group rejected its $11 billion offer earlier this year.

MGM Resorts International  (MGM) - Get MGM Resorts International Report said Tuesday that it won't submit an improved bid for U.K. bookmaking and gaming group Entain plc

MGM, which offered more than $11 billion for the owner of London-based bookmaker Ladbrokes earlier this year, said "limited engagement" from Entain -- which also includes brands such as Ladbrokes, Coral, BetMGM, bwin, Sportingbet, Eurobet, partypoker and partycasino -- regarding the takeover spurred its decision, but noted it will continue to work with the group on its sports betting and gaming joint venture BetMGM. 

Entain told its shareholders in early January to take no action with respect to MGM's offer and has asked the Las Vegas Strip's largest casino operator for "additional information in respect of the strategic rationale for a combination of the two companies."

"BetMGM, our U.S. sports betting and online gaming venture with Entain, remains a key priority for the Company as we continue to leverage our preeminent physical gaming, entertainment, and hospitality platform to expand digitally," said Bill Hornbuckle, CEO of MGM Resorts International. "We believe that BetMGM has established itself as a top three leader in its markets and we remain committed to working with Entain to ensure its strong momentum continues as it expects to be operational in 20 states by the end of 2021."  

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MGM International shares were marked 4% higher in early trading on the New York Stock Exchange following the statement to change hands at $31.00 each. Entain shares, meanwhile, plunged 14% on the London Stock Exchange to change hands at £12.17 each.