Hard Rock denies involvement in Star Entertainment bid

Company News

by Glenn Dyer

Shares in Star Entertainment (ASX:SGR) fell at the opening on Tuesday after Hard Rock International denied any link to a bid for Star.

News of the rumored approach saw Star shares jump 20% to 54 cents. However, Tuesday’s opening saw them down nearly 7% at around 50.5 cents at 10:30 a.m.

The denial came despite Star's announcement on Monday that it had received an approach from a related company.

US-based Hard Rock stated it had not licensed its name to any proposal and would consider legal action against anyone who used it in talks regarding a deal for Star.

In a statement on Tuesday (following two on Monday), Star said:

"The Star Entertainment Group Limited refers to the announcements released yesterday following various media articles regarding potential corporate activity involving The Star.

"As noted yesterday, The Star has not received any proposal directly from Hard Rock International.

"The Company has received inbound interest from a number of external parties regarding potential transactions, including an incomplete and indicative proposal from a consortium of investors which included the entity 'Hard Rock Hotels & Resorts (Pacific)'.

"The Star confirms that it has not engaged in substantive discussions with the consortium in respect of its proposal.

"The Company today notes the statement issued by Hard Rock International which clarifies that Hard Rock International is not involved in, nor has it authorized, any discussions, activities, or negotiations on its behalf in connection with a proposal for The Star.”

Monday’s Australian Financial Review report mentioned Hard Rock Hotels and Casinos as being interested in Star. The AFR said Hard Rock was leading a consortium.

Star’s second statement mentioned a different company, "Hard Rock Hotels & Resorts (Pacific)”.

Now, Hard Rock International says it's not involved in any way...

Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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