LADBROKES owner Entain's shares soared in the final hours of trading yesterday after revealing it had received a takeover inquiry from American betting giant Draftkings.

The potential offer, believed to be in the region of $20bn (£14.6bn) in cash and stock, is the second approach for Entain in recent times after an approach worth around half as much by MGM was knocked back by Entain's board in January. Shares in Entain jumped 18 per cent after the takeover target confirmed media speculation to markets.

Analysts believes it is Entain's venture with MGM in the US that has attracted attention, as US states gradually move to legalise gambling.

Nicholas Hyett, equity analyst at Hargraves Lansdown said we could see a deal similar to that in which American firm Caesars Entertainment bought William Hill largely for its American assets before selling off legacy operations in the UK.

Draftkings began as a fantasy sports operator and went public on the NASDAQ in a blank cheque deal last year.

Entain's board told markets that "there can be no certainty that any offer will be made for the company, nor as to the terms on which any such offer may be made."

Draftkings have until mid-October to confirm an offer. MGM will also have a say on any takeover.

(c) 2021 City A.M., source Newspaper