Corvex Management Calls for Management Changes at Entain

Corvex Management, a New-York based asset manager, has revealed a 4.4% shareholding in FTSE 100 betting-and-gambling group Entain. This disclosure comes just a day after Entain's Chief Executive Officer, Jette Nygaard-Andersen, stepped down from her role.

In recent developments, funds affiliated with Corvex have purchased 28 million shares in Entain, which owns popular brands like Ladbrokes, Sportingbet, and Foxy Bingo. These shares have a value of £237 million ($299.1 million) based on Entain's closing price of 846.60 pence on Wednesday.

While acknowledging that the management change at Entain was a necessary first step, Corvex emphasized the need for further changes. They expressed their dissatisfaction with Entain's recent performance and stressed the importance of considering all options to drive value.

Corvex stated, "We intend to immediately engage with Chairman Barry Gibson and Interim CEO Stella David to be a helpful force for change."

Entain responded by affirming its commitment to constructive engagement with all shareholders, addressing any questions or concerns they may have.

Accelerating Growth and Delivering Long-Term Value

In our ongoing commitment to driving sustainable organic growth, expanding margins, strengthening our team, capitalizing on opportunities in the U.S., and delivering value for our shareholders, we have recently announced an accelerated plan. Our spokesperson expressed confidence in our ability to seize the significant growth opportunities that lie ahead.

Investor Displeasure Leads to Share Rise

The departure of Nygaard-Andersen, our CEO, was met with a rise in the company's shares. This indicates investors' dissatisfaction with her performance.

Analyzing Market Share Losses and Delayed Profitability

Davy Research analysts, Paul Ruddy and Ciaran O'Flynn, highlight the investor concern surrounding our recent market share losses for BetMGM, our joint venture with MGM Resorts International in the U.S. They also point out the delayed profitability, both of which have contributed to the struggles of our share price this year.

Nygaard-Andersen's Tenure and Share Performance

Appointed as CEO in January 2021, Nygaard-Andersen initially joined our board in 2019 as an independent non-executive director. Unfortunately, during her tenure, our share price has plummeted over 50% and is currently down 32% for the year.

Promising Upturn Seen in Share Price

Shares at 1141 GMT saw a promising rise of 7.2%, equivalent to 60.80 pence, reaching 907.40 pence.