InterActive Corp (IAC), MGM Resorts International’s largest shareholder, has pledged to contribute up to $1bn towards the land-based giant’s bid to acquire its BetMGM joint venture partner Entain.
Entain, formerly known as GVC, announced that MGM proposed an offer worth $11.0bn for the Ladbrokes Coral and Bwin operator, something MGM later confirmed.
However, Entain said that offer “substantially undervalues” the business, while MGM said it could not guarantee that it would make a firm offer before the deadline of 1 February.
IAC agreed to fund a cash option for Entain shareholders that do not wish to receive share compensation as part of MGM’s proposal of 0.6 shares for every one in Entain. This would see it contribute up to $1bn towards the cash payment.