MGM Resorts scraps takeover plans for Ladbrokes owner Entain

FILE PHOTO: A pedestrian walks past a branch of Ladbrokes in London, Britain December 22, 2017. REUTERS/Simon Dawson/File Photo/File Photo

(Reuters) - Casino operator MGM Resorts International on Tuesday scrapped plans to buy Ladbrokes owner Entain, saying it does not intend to submit a revised proposal for the British firm that snubbed an $11 billion takeover approach earlier this month.

Entain shares fell 17% to 11.82 pounds, after hitting a session low of 11.37 pounds on Tuesday on the news, paring almost all the gains made since the U.S. company’s approach was made public.

“We look forward to continuing to work closely with MGM to drive further success in the United States through the BetMGM joint venture,” Entain said in a statement.

MGM said it would not make a firm offer for Entain, which at the start of the year said the U.S. company’s approach significantly undervalued its business.

The United States is seen as the next big growth market for sports betting, spawning a series of transatlantic partnerships tapping into European expertise such as Britain’s William Hill being bought by Caesars Entertainment in a 2.9 billion pound deal.

The announcement from MGM also comes days after Entain’s Chief Executive Officer Shay Segev decided to step down, after just seven months in the role.

Reporting by Tanishaa Nadkar in Bengaluru; Editing by Ramakrishnan M.