Entain Plc faces a shareholder clash in its £250 million pursuit to acquire leading Baltics online gambling group Enlabs AB.

Texas hedge fund Alta Fox Capital Management, the owner of 3.3% of Enlabs shareholding, has said that it will refuse to sell any shares to Entain at the recommended offer of SEK 40 (£3.50) per share.

Led by US investor Connor Haley, Alta Fox stated that Entain has ‘materially undervalued the company’ by proposing an offer to investors that provides a ‘negligible premium of 1.1% to the pre-offer trading price’.

Rejecting Entain’s bid, Alta Fox said that it has the support from ‘more than 10% of Enlabs’ investors that will choose to reject Entain’s recommended offer.