Meister’s Corvex Management Takes 4.4% Stake in Entain
Less than 24 hours after Jette Nygaard-Andersen resigned as chief executive officer of Entain (OTC: GMVHY), Keith Meister’s Corvex Management revealed it took a 4.4% stake in the Ladbrokes owner.
Corvex is a major investor in MGM Resorts International (NYSE: MGM) where Meister is a fellow member of the table of directors. The cassino heavyweight is Entain’s 50/50 partner in BetMGM. Meister’s steady joins Dendur Capital and Sached Heam Capital, 2 New York-based parry funds, inward lately telltale(a) activistic stakes in the Coral owner. Those two money managers bought shares inwards Entain before Nygaard-Andersen’s resignation.
We trust Entain is at a vital critical point and can benefit from the constructive meshing of a well-informed shareholder with substantive manufacture and company-specific get and expertise,” said Corvex inward a statement.
The skirt monetary fund added it intends to work with Entain Chairman Barry Althea Gibson and meantime CEO Frank Philip Stella Saint David “to follow a helpful thrust for change.”
Corvex Entain Investment Could Stoke MGM Rumors
In midday trading, Entain’s US-listed shares were higher by nearly 9%, indicating investors are enthusiastic nigh the going away of Nygaard-Andersen and Corvex taking a post in the gaming company.
The news could also reignite speculation that MGM could revisit a takeover offer for Entain. Corvex is an activistic investor, meaning it’s pushing for some cast of alter with its investment funds inward the company. With Meister being an MGM director, he’d almost certainly ballot inwards favour of the Bellagio operator summons anew for its BetMGM partner.
Following Entain’s Jan 2021 rejection of an $11.06 1000000000000 takeover adjure from MGM, venture has been rampant the gambling casino company would eventually revisit an acquisition scenario, though executives from that business firm experience said such a deal isn’t inward the near-term offing. Entain investors are likely wishing their society had recognised that sell because the market place value of the manipulator has since slumped to $6.83 billion.
Corvex and the other activists could force Entain to sell its BetMGM stake to MGM — something the latter would potential be agreeable to — but it’s non clear up if that’s their design of onrush at the moment. Meister’s sidestep fund is also a large investor in Sweden’s Kindred Group, but granted Entain’s recent missteps with acquisitions, it may live unlikely that he’d bear on for Entain to be a buyer of Kindred.
Entain Performance ‘Unacceptable’
Entain and Nygaard-Andersen became targets for activists followers a debt-fueled $2 1000000000000 acquisition binge that saw the manipulator gobble up littler sports betting outfits across Europe, seemingly to bulk up and fend turned unsolicited takeover bids.
Those missteps, coupled with BetMGM’s declining marketplace apportion in the US and Entain’s recent $729 jillion defrayal to UK regulators to root allegations of bribery related to its Turkish operations, potential sealed Nygaard-Andersen’s fate.
The former chief executive director officer did herself no more favors with her inability to moderate incorporated costs and her knack for private air move drew the ire of Entain investors who dubbed her “Private Jette.” For its part, Corvex sees to a greater extent modify coming at the gaming company.
“While the Company’s recent direction commute was a necessary first off step, further alter is required. Simply put, Entain’s recent performance has been unaccepted and all options must follow considered to driving value,” concluded the money manager.
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