Entain shares led the FTSE 100 on Friday after an activist hedge fund was revealed to have bought a large stake in the gambling giant. The owner of Ladbrokes, whose boss Gavin Isaacs suddenly quit this week after just five months, has seen major changes as a result of activist pressure in the recent past. In January last year Entain gave Eminence Capital’s Ricky Sandler a board seat after the hedge fund’s demands ultimately led to the departure of’ Isaac's predecessor as chief executive Jette Nygaard-Andersen.
And a stock market filing on Friday revealed that New York-based Corvex Management had purchased a voting share of Entain stock equivalent to 5.3 per cent. Entain’s shareholder register suggests Corvex, which now owns more than 34 million shares, is now a top 10 investor. Entain has endured a difficult period in recent years with high leadership turnover compounded by a range of regulatory issues.
It displaces Janus Henderson Group which had a 4.99 per cent stake as of 30 January. Entain shares were up 5.5 per cent to 735.8p by midday on Friday, taking 2025 gains to 5.9 per cent so far. The group, which also owns the Coral and BetMGM brands, has endured a difficult period in recent years with high leadership turnover compounded by a range of regulatory issues. In June 2023, Eminence Capital sent a letter to Entain's board of directors criticising Nygaard-Andersen and the group’s £594million takeover of STS Holding S.A.
It said it was 'disappointed' Entain issued new stock and was adopting what it deemed a 'shareholder value destroying strategy'. Corvex, which previously held a 4.99 per cent stake in Entain, was reportedly among three other hedge funds vying for board seat last year with the aim of controlling the hiring process for the new chief executive and any future mergers and acquisitions. The hedge fund was founded by Keith Meister in December 2010, with the goal of investing in high-quality businesses undergoing change in industries with positive secular tailwinds.
