CITY WHISPERS: Will MGM still be willing to gamble on Entain?

Shareholders in Ladbrokes-owner Entain must have been struggling to read the runes last week.

First of all were the rumours, reported in The Mail on Sunday, that joint venture partner MGM Resorts is weighing a bid.

That was followed by the good news on Thursday that the joint venture in question, BetMGM had a buoyant 2022 with net revenues up 69 per cent to $1.4 billion (£1.1 billion), ahead of guidance.

Confusion: Shareholders in Ladbrokes-owner Entain must have been struggling to read the runes

So far so good. Entain will issue an update on its own trading this week. But the talk is that any bid from MGM depends on a Government gambling White Paper due next month.

Also on Thursday, Gambling Minister Paul Scully indicated to the Betting and Gaming Council that there are ‘still too many failings’ and the Bill could be more draconian than they had hoped.

Investment bank Jefferies noted the ‘negative tone’, adding that further consultations seem likely ‘thus adding uncertainty’.

Will that dampen MGM’s ardour?

Political stance on UK battery industry positive 

While the future of collapsed electric battery maker Britishvolt hangs in the balance, another firm has been quietly making progress. 

The Government had refused to release funds to back Britishvolt. 

However, the political stance on building a UK battery industry is still positive, a Liberum report said last week. 

AIM-listed Ilika has won a place on the £330 million state-backed Faraday Battery Challenge, which aims to get electric tech off the ground. 

Turbulent time at Direct Line

A turbulent time at Direct Line has not gone unnoticed. Having axed its dividend and issued a profit warning this month, short positions in the insurer last week hit their highest level in 10 years.

The FTSE 250 company’s share price has crashed by 43 per cent in the past year, leading to the departure of chief executive Penny James last week.

Figures from the Financial Conduct Authority reveal the number of contracts out on loan for Direct Line has hit almost 3.5 per cent.

Short sellers will be celebrating this weekend, then, after the firm’s value fell on Friday to £1.75, its lowest ebb in five years.

Contango showdown

Coming up in the latest round of AGM revolts, coking coal miner Contango Holdings could face a showdown with investors next week over concerns about its board.

Proxy advisers ISS and Glass Lewis have urged shareholders to abstain or vote against the re-election of directors at next week’s annual meeting.

ISS cites, among several bugbears, that the two non-executive board members have too many share options to be considered independent.

Glass Lewis takes umbrage with the re-election of non-executive chairman Roy Pitchford because the firm does not have pay or audit committees.

Setting up these groups could be tricky with only three board members – but it is still City best practice.