MARKET REPORT: Gambling giant Entain’s shares rise on talk of sell-off

Shares in takeover target Entain rose yesterday on reports that private equity predators are poised to pounce on the owner of Ladbrokes and Coral.

The gambling giant could sell some of its foreign brands to buyout firms such as CVC Capital or Apollo, which bought Wagamama owner The Restaurant Group (TRG) last year.

According to reports last weekend, the group has hired the investment bank Moelis to lead an investigation into its activities.

Shares rose 5.2 per cent, or 41p, to 825p yesterday, valuing the company at around £5.3bn.

The departure of Entain’s chairman has fueled speculation that the company could become vulnerable to further attacks.

Barry Gibson, who announced plans to leave last week, has repelled two takeover attempts since taking office in February 2020.

Entain rejected an £8 billion takeover – worth 1383p per share – from MGM in January 2021.

In late October 2021, Draft Kings walked away from a £16 billion takeover bid for the London-listed company.

Entain also continues to search for a CEO, who could be announced within days or weeks, after Jette Nygaard-Andersen left in December.

Russ Mould, investment director at broker AJ Bell, said: ‘Expect a few twists and turns when the starting gun is fired again on a bidding campaign, as there will undoubtedly be several parties interested in breaking up Entain.’

The FTSE 100 rose 0.4 percent, or 32.31 points, to 7943.47 and the FTSE 250 rose 0.7 percent, or 128.64 points, to 19854.58.

Bitcoin’s rollercoaster ride continued, rising above $70,000 again. Last month, the digital currency hit an all-time high of nearly $74,000 before falling sharply.

Oil was also falling, following signs of easing tensions in the Middle East. Brent crude fell 1.3 percent to $90 a barrel.

The price drop sent airline shares higher, including Easyjet, which were also pushed higher by an analyst upgrade at investment bank UBS. Shares rose 3.3 percent, or 18.6p, to 577.8p.

And holiday company Tui rose 3.5 percent, or 22.5 cents, to 675 cents on its first day of trading after moving its main listing from London to Frankfurt.

Mining giant Rio Tinto has appointed a Chief Commercial Officer. Bold Baatar, who joined the company in 2013 and has been CEO of Copper since 2021, will replace Alf Barrios in September. The shares added 4.2 percent, or 209.5p, to 5184p.

The US paper giant stalking one of Britain’s biggest packaging companies is closing in on making a formal bid worth more than £5 billion.

International Paper hopes to reach agreement on a deal with DS Smith by the end of this week, Sky News reports.

Last week, the US group confirmed The Mail’s revelation that it will establish a European headquarters in London and list shares in the city to get its proposal across the line.

DS Smith is also considering a new takeover bid, albeit at a lower price, from its major rival Mondi (up 1.3 percent, or 18 cents, to 1416.5 cents). Shares fell 0.2 percent, or 0.6p, to 409.4p.