Flutter and Murdoch in duel over betting stake

Investors in Flutter Entertainment were on edge after the betting giant confirmed it was locked in a legal battle with rupert Murdoch’s Fox.

the media behemoth has filed a claim against Flutter over a dispute about an investment in Us sports betting group Fanduel.

the rapid legalisation of gambling in Us states over the last few years has made it one of the most lucrative markets in the world – and British companies have rushed in.

Fox helped Paddy Power and Betfair owner Flutter increase its stake in Fanduel to 95pc last year. the deal valued Fanduel at £8.2bn. the aid, through buying Flutter shares, also came with an option for Fox to buy an 18.6pc holding.

But the partnership has soured over the price, with Fox saying it should pay an equivalent amount that Flutter did.

Flutter denies this is the case and argues that it agreed Fox would pay a fair market value if it took the option up. the Ftse 100 betting group also said it would be a ‘windfall’ for Fox compared with Fanduel’s current price.

It is not clear what that price is, but online gambling groups have thrived during the pandemic as punters cooped up at home turned to betting on their laptops and mobiles.

Flutter has said it will ‘vigorously defend its position’ in the upcoming arbitration. Its shares dropped 2.5pc, or 4.55p, to 180.05p, which sent it to the bottom of the Footsie leaderboard.

But the wider market was on the up. the FTSE 100 gained 0.9pc, or 61.77 points, to close at 6885.32. But it was the FTSE 250 that stole the show. the index closed 0.8pc higher, up 166.09 points, to reach a record high of 22,160.57 – meaning it has now recouped all its losses since the markets went into turmoil in February last year, when the scale of Covid was only just being understood.

Anglo American edged 0.8pc, or 24.5p, up to 2998.5p after its famous diamond arm De Beers sold £320m in its third gemstone auction of the year.

Luxury spending had been waning even before the pandemic and lockdowns that have meant people are wearing jewellery less frequently – and are more cautious about how they spend their money – have hit the industry further.

Investors rushed to exit former stock market darling Hurricane Energy after an estimate of its oil and gas resources in the north sea was so dire that it was forced to warn shareholders that there was ‘ no certainty of any further activity’. It was thought there were 1.2bn barrels of oil in the assets west of shetland but this has been all but wiped out.

It is looking to refinance but