{"id":6164,"date":"2023-11-23T12:21:00","date_gmt":"2023-11-23T12:21:00","guid":{"rendered":"https:\/\/slategray-wallaby-310340.hostingersite.com\/index.php\/2023\/11\/23\/entain-faces-investor-revolt-as-us-activist-hedge-funds-join-criticism\/"},"modified":"2023-11-23T12:21:00","modified_gmt":"2023-11-23T12:21:00","slug":"entain-faces-investor-revolt-as-us-activist-hedge-funds-join-criticism","status":"publish","type":"post","link":"https:\/\/casino-online-best.com\/index.php\/2023\/11\/23\/entain-faces-investor-revolt-as-us-activist-hedge-funds-join-criticism\/","title":{"rendered":"Entain Faces Investor Revolt as US Activist Hedge Funds Join Criticism"},"content":{"rendered":"
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With two more US activist hedge funds, Dendur Capital and Sachem Head Capital Management, joining Eminence Capital in voicing concerns about the business\u2019s share price and CEO leadership, Entain, the parent company of Ladbrokes and Coral, is coming under more pressure.<\/p>\n

The UK gambling powerhouse has seen covert acquisitions by hedge funds Dendur Capital and Sachem Head Capital Management of New York, which has increased investor angst. According to the Financial Times, Entain\u2019s share price has plummeted by more than a third this year, hitting a three-year low, but its rival Flutter\u2019s share price has increased by 11%.<\/p>\n

Activist investors attribute their concerns to a number of failures, including as management errors and a regulatory crackdown on internet betting in the UK. An important turning point was this summer\u2019s stock raising, which hurt Entain\u2019s share price while financing the purchase of Polish gaming business STS Holding.<\/p>\n

CEO Leadership Under Scrutiny<\/strong><\/h2>\n

The focus is squarely on CEO Jette Nygaard-Andersen, who took over the position in January 2021<\/a> despite having little prior expertise in the gaming industry. Her leadership is criticized by activists, who charge that the company\u2019s problems are the result of \u201ca lot of self-inflicted wounds.\u201d Entain issued a warning in September about a possible \u201clow single-digit percent\u201d fall in pro forma online gaming sales for the year, despite the company having seen double-digit increase in online revenues for 23 straight quarters.<\/p>\n

Entain promised to add four additional non-executive directors to its board in response to the activist pressure. But activists\u2014led by Ricky Sandler, the founder of Eminence\u2014are pressing for his appointment to the board and his assistance in filling other open posts.ntain\u2019s stock value.<\/p>\n

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