UPDATE 2-UK blue-chips slip as MGM drops takeover plan for Entain

  • Reuters
  • Stock Market News
UPDATE 2-UK blue-chips slip as MGM drops takeover plan for Entain
Credit: © Reuters.

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* Entain plunges as MGM abandons takeover plan

* Hammerson down on low first-quarter rents

* Superdry tumbles on first-half loss

* FTSE 100 down 0.1%, FTSE 250 sheds 0.1% (Updates to market close; Adds details, comment)

By Shivani Kumaresan

Jan 19 (Reuters) - London's FTSE 100 reversed early gains on Tuesday, as Ladbrokes (LON: LCL ) owner Entain slumped after U.S. casino operator MGM opted out of a $11 billion takeover plan, while miners also dragged.

The FTSE 100 index .FTSE closed down 0.1%, declining for the third consecutive session.

Entain ENT.L plunged 11.9% to the bottom of the blue-chip index after MGM said it would not submit a revised proposal or make a firm offer for Entain, which had said the approach announced two weeks ago significantly undervalued its business. dragged even as Rio Tinto RIO.L - the world's biggest iron ore producer - reported a 2.4% rise in fourth-quarter iron ore shipments, helped by industrial activity in China. shares fell 1.0%, while Anglo American AAL.L and Glencore GLEN.L dropped more than 1%.

"Today is an example of a period which we are in right now - which is very much a consolidatory phase," said Craig Erlam, an analyst at OANDA.

"In the coming days, we will learn a lot about how impactful the new U.S. administration will be, with the slimmest of majority in the Senate."

The FTSE 100 tumbled 14.3% in 2020, its worst performance since the 2008 financial crisis and underperforming its European peers by a wide margin, as pandemic-driven lockdowns battered the economy and led to mass layoffs.

Britain reported a record number of deaths from COVID-19 today with 1,610 people dying within 28 days of positive coronavirus test, exceeding the previous peak set last week. mid-cap index .FTMC lost 0.1%, with real estate and consumer stocks being the biggest drag on the index.

In other company news, shopping centre operator Hammerson Plc HMSO.L fell 2.1% after receiving less than half of the rents due for the first quarter as stricter COVID-19 restrictions aggravated conditions in Britain's high streets and rest of Europe. cube maker Premier Foods PFD.L fell 4.8% despite a 90% jump in the third-quarter online sales, while British fashion group Superdry SDRY.L lost 16.3% after reporting a big drop in sales in the Christmas quarter.

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