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(Alliance News) - Ladbrokes betting chain owner Entain early Wednesday provided further details of the takeover approach from Boston, Massachusetts-based peer Draftkings.
Late Tuesday, Entain had confirmed a press report from CNBC that it received a takeover approach from US sports betting firm DraftKings, but it hadn't provided the price offered.
Entain said on Wednesday that an earlier approach from DraftKings at 2,500 pence per share, which comprised of a combination of DraftKings shares and cash, was rejected. In addition, another proposal was received on Sunday by which DraftKings would offer 2,800p per Entain share, consisting of 630p in cash and the balance payable in new DraftKings Class A common shares.
The latest offer represented a premium of 46% to Entain's closing share price on Monday.
Entain shares were up 8.3% at 2,449.00p early Wednesday. DraftKings closed down 7.4% in New York on Tuesday at USD52.77.
In response, Entain said it would "carefully consider" the proposal and a further announcement will be made as and when appropriate. Shareholders were urged to take no action.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 1.0% at 7,051.08
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Hang Seng: Hong Kong market closed for National Day holiday
Nikkei 225: closed down 0.7% at 29,639.40
DJIA: closed down 50.63 points, 0.2%, at 33,919.84
S&P 500: closed down 0.1% at 4,354.19
Nasdaq Composite: closed up 0.2% at 14,746.40
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EUR: firm at USD1.1724 (USD1.1714)
GBP: firm at USD1.3651 (USD1.3643)
USD: up at JPY109.58 (JPY109.26)
Gold: down at USD1,779.85 per ounce (USD1,781.03)
Oil (Brent): up at USD75.41 a barrel (USD73.84)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Wednesday's Key Economic Events still to come
1000 CEST Germany Ifo economic forecast
1600 CEST EU flash consumer confidence indicator
1100 BST Ireland wholesale price index
0700 EDT US MBA weekly mortgage applications survey
1000 EDT US existing home sales
1030 EDT US EIA weekly petroleum status report
1400 EDT US Federal Reserve interest rate decision
1400 EDT US Fed economic projections
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US President Joe Biden downplayed prospects of brokering a post-Brexit trade deal with UK Prime Minister Boris Johnson, as UK government ministers resorted to considering downgrading their efforts to the joining of an existing pact. Meeting Johnson in the White House, Biden issued a fresh warning for the UK not to damage the peace process in Northern Ireland over the EU departure. Biden did not counter the assertion from his predecessor Barack Obama's that Britain would be at the "back of the queue" for a post-Brexit free trade agreement. Sitting next to Johnson in the Oval Office, the US President told reporters: "We're going to talk a little bit about trade today and we're going to have to work that through." The UK government was understood to be instead considering whether to join an existing pact with the US, Mexico and Canada to boost trans-Atlantic trade in a major departure from their prior ambitions. Downing Street said brokering a comprehensive deal with the White House remains "the priority" but did not rule out joining other pacts as a backup.
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Bank of Japan decided by an 8-1 majority vote to keep a negative interest rate of 0.1%. BoJ also kept its loose monetary policy unchanged. The bank said it will continue expanding the monetary base until the year-on-year rate of increase in the consumer price index exceeds 2% and stays above the target in a "stable manner". Japan's central bank noted that local economy has picked up as a trend, although it has remained in a "severe situation" due to coronavirus, both at home and abroad. Exports and industrial production have continued to increase despite supply-side constraints. However, the bank noted that the level of Japan's economic activity in the face-to-face services sector is expected to be lower than that prior to the pandemic for the time being.
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BROKER RATING CHANGES
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BARCLAYS INITIATES BURBERRY WITH 'EQUAL WEIGHT' - TARGET 2,000 PENCE
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ODDO BHF RESUMES BURBERRY WITH 'UNDERPERFORM' - TARGET 1848 PENCE
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BARCLAYS INITIATES MULBERRY GROUP WITH 'EQUAL WEIGHT' - TARGET 275 PENCE
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PEEL HUNT CUTS ENTAIN TO 'HOLD' ('BUY') - TARGET 2,300 PENCE
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COMPANIES - FTSE 100
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Entain's gambling peer Flutter Entertainment said its legal dispute with the US state of Kentucky has been settled in full. As part of the settlement, Flutter has agreed to pay USD200 million to the Commonwealth of Kentucky in addition to USD100 million previously forfeited. In return, Kentucky has agreed to cease all further actions with respect to the case. The case related to the reinstatement of a USD870 million fine by the Commonwealth of Kentucky, first imposed in 2010 against subsidiaries of Stars Group, prior its merger with Flutter last year.
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Halma said it has made strong progress in the first half with its financial performance ahead of expectations, as the safety equipment maker issued improved guidance for the full year. Halma said revenue growth and return on sales has exceeded expectations and historic levels and order intake has been ahead of both revenue this year and of order intake for the same period last year. Halma expects to report strong organic constant currency revenue and profit growth for the first half of the year to September 30, with profitability benefiting from a slower-than-expected return of variable overhead costs as Covid restrictions eased. This performance compares to a weaker comparative period in the first half of the 2021 financial year when Halma saw the worst damage from the pandemic, it added. However, the company warned on higher costs. "Although we expect to see continued impact on revenue, costs and working capital from increased supply chain, logistics and labour market disruption, we currently expect adjusted profit before tax for the full year to be slightly ahead of our previous guidance. Therefore, our results for the full year are expected to be more weighted to the first half than in previous years," Halma said.
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BT is in the advanced stage of talks to sell its sports broadcasting arm to DAZN, the Financial Times reported on Tuesday. The FT, citing multiple people with direct knowledge of the talks, said a deal could be struck within weeks. DAZN is majority-owned by investment firm Access Industries, which also holds a stake in Warner Music. The newspaper said an agreement for DAZN to buy BT Sport is not certain, however, with a number of factors, include sale price, a sticking point in talks. The sale price could be in the region of hundreds of millions of pounds. Because of a cross-licensing deal, Sky would need to green light DAZN's potential purchase of BT Sport, the FT added.
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COMPANIES - FTSE 250
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PZ Cussons reported a strong annual performance, with the personal care products maker buoyed by increase demand for its hygiene products during the pandemic. For the financial year ended May 31, revenue was GBP603.3 million, up 2.7% from GBP587.2 million. Pretax profit was GBP63.2 million, more than triple GBP18.3 million a year ago. PZ Cussons raised its total dividend 5.0% to 6.09p from 5.80p. Chief Executive Jonathan Myers commented: "We were able to demonstrate improved levels of profitability and significantly step up investments in marketing activity and commercial capabilities as we set out to be a business that builds stronger brands and serves more consumers. This was set against a backdrop of the Covid-19 pandemic, which saw unprecedented levels of demand for Hygiene products. Our brands were available for our consumers when they needed them most and we retained market leadership - both with Carex in the UK and Morning Fresh in Australia. We were also pleased with the strong performance of our Baby and Beauty businesses, as consumer hygiene habits start to normalise."
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COMPANIES - MAIN MARKET AND AIM
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Saga, which provides insurance and cruises to people over 50, swung back to a profit of GBP700,000 in the half year that ended July 31 from a whopping GBP55.5 million loss a year before, though revenue was down to GBP156.4 million from GBP192.4 million. Saga said the recent performance was in line with expectations against the backdrop of pandemic travel restrictions. It said it had restarted its cruise operations in June, with international sailings underway since the end of August.
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COMPANIES - OTHER
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Pret a Manger has said it will open more than 200 UK shops over the next two years, after securing a further GBP100 million cash injection. The sandwich and coffee chain was battered by the pandemic but said it has seen its city centre sites recover further in recent weeks as more workers have returned to the office. The company revealed that it plunged to pre-tax operating loss of GBP256.5 million for 2020, in new filings on Companies House. Pret saw revenue fall by 58% to GBP299 million for the year, as it was forced to shut the shops for months and saw footfall significantly depressed by Covid-19. It said its regional shops were now at their strongest ever levels while its London City sites had rebounded to 72% of weekly pre-pandemic sales.
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Wednesday's Shareholder Meetings
Babcock International Group PLC - AGM
Civitas Social Housing PLC - AGM
IG Group Holdings PLC - AGM
Ilika PLC - AGM
Miton UK MicroCap Trust PLC - AGM
Oberon Investments Group PLC - AGM
Seed Innovations Ltd - AGM
Shearwater Group PLC - AGM
SRT Marine Systems PLC - AGM
Stanley Gibbons Group PLC - AGM
Studio Retail Group PLC - AGM
Worsley Investors Ltd - AGM
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By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
