Corvex Management describes Entain’s recent performance as “unacceptable” as it takes 4.4% stake

Corvex Management has taken an approximate 4.4% stake in Entain following the departure of CEO Jette Nygaard-Andersen yesterday, 13 December.

The New York-based asset management firm has snared around 28 million shares in the FTSE 100 giant in a statement move.

The news has sent Entain’s stock jumping once again in early trading by more than 7% to 907p.

Along with announcing it had acquired the stake in the business, Corvex Management released an accompanying statement, in which it said Entain was at a “critical juncture”.

Commenting on her departure, Nygaard-Andersen said the conclusion of the HMRC investigation into allegations of bribery into the group’s former Turkey-facing business had left Entain at a “clean inflection point”.

Entain has appointed current non-executive director Stella David as interim CEO, with the former Bacardi exec remaining in the post until a permanent replacement is found.

The Corvex Management statement read: “We believe Entain is at a critical juncture and can benefit from the constructive engagement of a well-informed shareholder with substantial industry- and company-specific experience and expertise.

“While the company’s recent management change was a necessary first step, further change is required. Simply put, Entain’s recent performance has been unacceptable and all options must be considered to drive value.

“We intend to immediately engage with chairman Barry Gibson and interim CEO Stella David to be a helpful force for change.”

Corvex Management has also built up a 15% stake in Stockholm-listed operator Kindred Group, equating to more than 34.5 million shares.

Additionally, the fund holds more than six million shares in MGM Resorts.