By Geoffrey Smith
Investing.com -- U.K. betting group Entain (LON:ENT) said it's considering an improved offer of 2,800 pence a share from U.S. group DraftKings (NASDAQ:DKNG), after rejecting a first bid of 2,500p as too low.
The new offer is a hybrid cash-and-stock offering, consisting of 630p in cash and the rest in Draftkings shares. The total offer values Entain at 46% more than its closing price on Monday. Entain stock rose 18% on Tuesday after news of the first offer, closing at 2,261p.
Entain said it will study the new bid closely and recommended shareholders take no action at the present time.
The move is the latest deal in a red-hot sector that had seen a flurry of deal-making in recent years. U.K. gambling groups with longer traditions and established technology platforms have been attractive partners for a U.S. industry that is scaling up rapidly as the country liberalizes its gambling laws.
Entain, which operates the Ladbrokes (LON:LCL) and Coral brands in the U.K., already has a joint venture in the U.S. with MGM Resorts (NYSE:MGM).