Shares of Entain, which turned down a takeover bid from MGM Resorts earlier this year, hit a new high on Wednesday. It was after the U.S. casino group’s $4.4 billion asset sale boosted bets of a renewed bid for the British bookmaker.
In January, Entain, which owns the Ladbrokes and Coral brands, rejected an $11 billion offer from MGM as too low. However, some investors believe that MGM’s sale of its stake in MGM Growth Properties will provide it with additional funds. This could prompt MGM to make another bid for Entain, according to analysts.
“Investors’ debate continues for the likelihood of MGM returning with an improved bid for ENT since its first unsuccessful bid,” said Davy analyst Michael Mitchell.