Ladbrokes owner says €9bn offer by casino MGM undervalues its business; Paddy Power shares surge     

News of a takeover approach of Ladbrokes from US casino operator MGM Resorts helped send shares of other gambling firms much higher. Picture: Nick Ansell/PA Wire

Ladbrokes owner Entain said an $11bn (€9bn) takeover approach from US casino operator MGM Resorts significantly undervalued its business, as companies move to capitalise on an expected boom in US betting.

The news also helped send the shares of other gambling firms much higher, with Paddy Power-owner Flutter at one stage jumping almost 4.5% to value the Irish-based multinational at €30.3bn. Flutter has also built a significant presence in the US through acquisitions in the last two years.