MGM Says It Won’t Make New Offer for Entain After Rejected Bid

(Bloomberg) -- U.S. casino operator MGM Resorts International said it decided not to make a firm offer for Entain Plc after the U.K. gambling company dismissed its takeover attempt for about $11 billion. Entain shares slumped as much as 20% in London.

Under the proposed terms, Entain investors would have exchanged stock for 0.6 of a share of MGM and would have held about 42% of the combined business. In a statement Tuesday, MGM said that “after careful consideration and having reflected on the limited recent engagement between the respective companies regarding MGM’s rejected all stock proposal,” it doesn’t plan to submit a new offer.

A merger would have given MGM full control of its U.S. joint venture with Entain at a time when the industry is seeing dramatic growth. The U.S. sports betting market alone is expected to quintuple in size to $8.4 billion by 2024, according to the consulting firm Vixio Gambling Compliance.

“MGM is committed to being a premier global omni-channel gaming and entertainment company, and will maintain a disciplined framework while evaluating a range of compelling strategic opportunities,” according to the statement.

MGM shares rose as much as 6.7% in early U.S. trading. Entain was down 17% to 1,179.50 pence in London.