Investor unrest is building at Entain, the owner of Ladbrokes, after two more US-based activist hedge funds voiced concerns over the gambling group’s share price and CEO Jette Nygaard-Andersen’s ability to revive the fortunes of FTSE 100 company, according to a report by the Financial Times.
The report cites unnamed sources familiar with the matter as revealing that New York-based Sachem Head Capital Management and Dendur Capital have built positions in Entain and have now joined fellow activist Eminence Capital in airing their grievances.
Entain has seen a slump in sales in its core markets, in particular in the UK where tough regulatory measures are impacting the online betting industry, while a number of management mishaps and costly business transactions have added to the company’s woes.
Entain’s share price has plummeted by more than a third this year to a three-year low, while rival firm Flutter has climbed 11%.
In response to the mounting investor pressure, Entain announced plans earlier this month to onboard four new non-executive directors to fill vacant positions on its board. The activists meanwhile, want to see Eminence founder, Ricky Sandler, appointed to the board and to also participate in the appointment process for the remaining vacant seats, according to the FT’s sources.
https://www.hedgeweek.com/activist-hedge-funds-ramp-up-entain-pressure/#:~:text=Investor%20unrest%20is%20building%20at,report%20by%20the%20Financial%20Times.