The gambling giant behind Ladbrokes and Coral has appointed an activist investor to its board following the sudden departure of its chief executive.
Entain said Ricky Sandler, the boss of New York-based Eminence Capital, which has a 4 per cent stake, will be a non-executive director ‘with immediate effect’.
Sandler, who was heavily critical of Entain chief executive Jette Nygaard-Andersen before she quit last month, will now work with the board to hire another non-exec ‘mutually agreeable to Eminence and the company’.
Hired: Entain, the gambling giant behind Ladbrokes and Coral, has appointed an activist investor to its board
He had called for Entain to sell some or all of its stake in its US betting joint venture Bet MGM, which it co-owns with MGM Resorts.
Entain shares popped higher in early trading as investors welcomed the prospect of a shake-up – but later closed down 0.5 per cent, or 4.6p, at 980.8p.
The stock fell almost 40 per cent in the close to three years Nygaard-Andersen was in charge even as revenues from the American joint venture soared.
In June last year, Sandler criticised Nygaard-Andersen and the £750million takeover of STS Holding, a Polish sports betting company. He said he was ‘disappointed’ Entain issued stock to fund the move and was adopting a ‘shareholder value-destroying strategy’.
‘We see the announcement as a positive share price catalyst,’ said Jefferies analyst James Wheatcroft, while Victoria Scholar, at Interactive Investor, said: ‘It could pave the way for a divestment of its stake in Bet MGM.’
The FTSE 100 was in subdued mood on its 40th birthday. The index, which launched on January 3, 1984, fell 0.5 per cent, or 39.19 points, to 7682.33, marking a second day of declines since New Year.
The FTSE 250 fell 1 per cent, or 185.40 points, to 19,326.40.
‘The FTSE 100 marked its 40th with a celebration more akin to a quiet pint in an empty pub than anything more befitting of a major landmark,’ said AJ Bell investment director Russ Mould.
There were mixed fortunes for Britain’s biggest drug companies as analysts at Jefferies eyed the sector. GSK rose 2.7 per cent, or 40.6p, to 1520.4p after they upgraded it to ‘buy’ from ‘hold’ and said prospects are ‘under-appreciated’.
But AstraZeneca fell 0.4 per cent, or 48p, to 10,740p after it was cut to ‘hold’ from ‘buy’. Jefferies cautioned that ‘much-needed’ approval for its experimental cancer drug Dato-DXd is unlikely until near the end of the year.
Luxury goods stocks were out of fashion as analysts raised fresh concerns about the outlook.
Stifel cut Burberry to ‘hold’ from ‘buy’, sending shares down 3 per cent, or 41.5p, to 1358.5p.
On the Continent, UBS warned of a ‘weak earnings season’ for major European players, sending Christian Dior owner LVMH down 3.8pc in Paris, while Gucci parent Kering fell 3 per cent, or 1.77p, to 380.73p.
Mining stocks were also on the slide as concerns about demand in China sent copper prices lower.
Anglo American fell 5 per cent, or 99.2p, to 1869p, Fresnillo was down 3.1 per cent, or 17.8p to 555.6p, Antofagasta dropped 3.6pc, or 59p, to 1592.5p and Glencore slid 2.2 per cent, or 10.2p, to 458.5.
Royal ratcatcher Rentokil fell 5 per cent, or 21.4p, to 411.1p, after analysts at RBC cut the target price to 575p from 610p.
Experian was also in focus as Citi raised its target price on the data analytics and consumer credit group from 2893p to 3122p. However, after a near-30 per cent rise in the stock in the past two months, it fell 2.1p, or 65p, to 3057p.
Shares in estate agent Foxtons jumped 11.1 per cent, or 5.2p, to 52.1p – the highest for more than two years – as it added to gains of over 50 pr cent in 2023.
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