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Investing.com – DraftKings stock (NASDAQ:DKNG) traded 0.8% lower in Wednesday’s premarket on worries over the aggressive bids the company continues to lure U.K.’s Entain (LON:ENT) with for a possible merger.
The stock had closed 7.4% lower Tuesday after Entain announced receipt of the offer.
After seeing its first bid, considered high by analysts, rejected by Entain, DraftKings on Sunday sweetened its offer.
DraftKings has now offered 2,800 pence per Entain share consisting of 630 pence in cash and the balance payable in new DraftKings shares. The latest offer is a premium of 46.2% to Entain’s closing share price on September 20 and amounts to more than four times the company’s 2020 revenue of 3.62-billion pound sterling (roughly $5 billion).
Entain said it is studying the latest offer and that DraftKings must announce a firm intention to buy not later than 5 PM on October 19 or say it does not intend to do so.
It said the deadline will only be extended with the consent of the U.K.’s Takeover Panel.
Entain is one of the world’s largest sports-betting and gaming groups, operating both online and in the retail sector. It has licenses in 27 countries and employs a workforce of more than 24,000.
In the U.S., the Group operates BetMGM, a joint-venture with MGM Resorts (NYSE:MGM).
