JPMorgan Rapidly Cuts Entain Stake Below Disclosure Threshold

JPMorgan Chase has reduced its stake in Entain to below 3%, less than two weeks after increasing it to 7%.

A Notification of Major Holdings filing confirmed the banking group crossed below the 3% disclosure threshold on 18 May. The move follows an earlier filing on 8 May showing JPMorgan had raised its total interest in Entain to 7%, consisting of 5.6% in voting rights and 1.4% through financial instruments.

This increased stake followed the closure of Eminence Capital, the New York-based hedge fund founded by Ricky Sandler, a non-executive director at Entain. Sandler stepped down from the board after his fund closed last month and sold its remaining 5.8% stake in the company on 7 May.

Share disposals follow sudden increase in Entain holdings

It remains unclear whether JPMorgan acquired shares directly from Eminence Capital through an off-market transaction. No formal details regarding the arrangement have been disclosed.

However, filings on the London Stock Exchange show JPMorgan gradually reduced its position almost immediately after increasing it. The bank disclosed share sales on 12, 13, 14 and 15 May. The only interruption came on 11 May, when the group marginally increased its position from 7.05% to 7.09% before resuming disposals.

Despite the volume of activity, Entain’s share price was relatively stable during the period. Shares opened at 532.28p on 8 May and closed around 532.4p on 15 May. During this stretch, the stock traded as low as 501.92p and peaked at 550.8p.

Market speculation around Entain continues despite stable shares

Entain has been the subject of market speculation in recent months, including recurring talks about a potential sale. However, its management has not publicly mentioned any active takeover discussions.

The FTSE 100-listed operator generated more than £5.2bn in group-wide revenue during FY25 but also recorded a £681m loss. This marked its third consecutive year in negative territory. The company operates major betting brands such as Ladbrokes and Coral across regulated markets.

JPMorgan did not provide a reason for either increasing or reducing its holding in Entain. But despite parting with a sizable chunk of shares, the market reaction has been relatively muted. Entain shares were still trading around 537p by early afternoon.

In a strange turn of events, JP Morgan drastically reduced its shares to under 3% after increasing it to 7% only weeks earlier. While the cause of this action is still unknown, the recent speculations around Entain are not helping matters. But the company’s share prices remain unaffected.