Entain PLC rose on Tuesday after People Inc announced an $18 billion proposal to buy MGM Resorts International, fuelling speculation that the company may seek to buy out the UK betting operator’s share of its American joint venture. 

Ladbrokes and Coral owner Entain has a 50% interest in BetMGM, a US joint venture run in conjunction with MGM Resorts, which also owns major Las Vegas properties including Bellagio and Aria.

On Monday, New York-based digital and print publisher People Inc submitted a non-binding proposal to acquire all outstanding shares of MGM Resorts that it does not already own for $48.30 per share in cash, valuing the business at around $18 billion. 

Shares in MGM Resorts International closed 16% higher at $50.69 in New York on Monday. 

People Inc began investing in MGM in 2020 and now owns 26.1% of MGM stock. 

‘We began investing in MGM nearly six years ago because we believed it represented a rare kind of business: one with real world assets that AI cannot easily replicate or disintermediate and exceptional digital growth opportunities. That conviction has only strengthened over time,’ said Barry Diller, People Inc chair.

‘We continue to believe the market materially undervalues the power and durability of MGM’s assets,’ Diller added.

In London, shares in Entain rose 2.9% to 579.00 pence each on Tuesday, on speculation that People Inc could seek to buyout Entain’s 50% stake in BetMGM.