MGM Resorts International said Tuesday it is no longer pursuing a deal to buy British gambling company Entain PLC, a deal that would have bolstered the casino operator’s presence in online-gambling.
Earlier this month, the Las Vegas-based casino operator made a bid for Entain by offering 0.6 of its shares for each Entain share, worth £8.09 billion ($10.99 billion). The Wall Street Journal first reported on MGM’s takeover approaches.
Entain, known as GVC Holdings until recently, had said that the deal, representing a 22% premium, undervalued the company.
“After careful consideration and having reflected on the limited recent engagement between the respective companies regarding MGM’s rejected all-stock proposal at an exchange ratio of 0.6 times, it does not intend to submit a revised proposal and it will not make a firm offer for Entain,” MGM said.
Entain, which owns the British gambling brand Ladbrokes, said it looks forward to continuing to work closely with MGM through their U.S. joint venture BetMGM.
