Crown (ASX:CWN) turns down Blackstone, approaches Star for more detail

Company News

by Michael Luu

Beleaguered casino operator Crown (ASX:CWN) has dealt a blow to Blackstone in the heated bidding war for the $8.8 billion company.

The ASX-listed gaming giant has officially turned down the US investment behemoth’s improved buyout deal worth $8.3 billion.

The company’s media release on Monday morning stated, “The Board has unanimously concluded that the Revised Proposal undervalues Crown and is not in the best interests of Crown’s shareholders”.

Crown (ASX:CWN) justified their rejection of the proposed acquisition by claiming that Blackstone underestimated the Australian company’s value with the $12.35-per share offer.

On the other hand, Crown has proceeded to assess the unsolicited, conditional, non-binding and indicative merger proposal from its casino rival Star Entertainment Group (ASX:SGR).

The Star submitted an offer presenting Crown shareholders with a choice between a direct premium-free share exchange and capped cash consideration worth $12.50 per share.

The James Packer-backed group has approached the bidder for further detail on their offer, before forming a view on the merits of the $12 billion deal.

Shares in Crown Resorts (ASX:CWN) are trading 0.4 per cent higher at $13.09