Shares in Ladbrokes owner Entain leap 24% on bid approach

Shares in the owner of the Ladbrokes and Coral betting brands, surged on Monday after it said it has received and rejected a approach from US casino giant MGM Resorts that values the business at £8.1 billion.

Entain, previously known as GVC Holdings, said it had received proposals from its joint venture partner in the US market, concerning a possible offer.

As at 9.52 am shares in Entain were up 281.26p, or more than 24%, to 1414.76p.

Under the terms of its most recent approach, MGM Resorts International, which runs a number of hotels and casinos, would offer 0.6 MGMRI shares for each Entain share.

Based on closing prices on December 31, that proposal represents a value of 1,383p per Entain share and a premium of 22% to Entain's share price as at that date.