Crown Resorts has told US investment giant, Blackstone to go away, a decision that could clear the way for a marriage to Sydney based rival group Star.
In a statement to the ASX on Monday morning, the Crown board officially rejected the improved $8.3 billion takeover offer from Blackstone.
Crown said the $12.35-per share proposal from Blackstone undervalued the company.
“The Board has unanimously concluded that the Revised Proposal undervalues Crown and is not in the best interests of Crown’s shareholders,” Crown said in a release to the ASX.
Crown also said it is still considering the merits of a $12 billion merger proposal with rival the Star Entertainment Group.
Crown shares closed at $13.04 on Friday, up 2.3% for the day and up 7.6 per cent since Star’s proposal emerged last week.
Star’s shares closed 2.8% higher Friday, and up 1% for the week, at $4.06. That’s a long way from the $5 a share Star claims its offer suggests its shares are worth.
Crown can always return with a higher price to add pressure on the Crown board.
The Star offer and the appointment of Steve McCann as CEO from the end of the month still have a long way to go – two royal commissions, probity checks in NSW and other states and a decision in NSW whether Crown can open its casino at Barangaroo and what Crown plans to do to make up for the financial impact of the loss of wealth Asian gamblers.
The Victorian royal commission into Crown starts its hearings today. The WA Commission started last week.
