Crown Resorts has rejected a third takeover offer from the Blackstone Group, but may consider a higher bid.
Last week, Crown said that Blackstone’s $12.50-per-share bid—for a total of $8.46 billion—“does not represent compelling value for Crown shareholders.”
But in a statement to the Australian Stock Exchange, Crown gave Blackstone “the opportunity to access non-public information to allow Blackstone to undertake initial due diligence inquiries on a non-exclusive basis so that it can formulate a revised proposal that adequately reflects the value of Crown.”
Blackstone’s first takeover bid in March came in at $11.85 per share. It increased that amount to $12.35 in May, but Crown spurned both offers as too long. New York-based Blackstone already owns 10 percent of Crown.
Crown is seen as ripe for a takeover. Faced with evidence of widespread money laundering and noncompliance across its operations, it is battling to keep its gaming licenses in Western Australia (WA) and Victoria, and attempting to prove itself suitable for a license in New South Wales.
Rival casino operator Star Entertainment Group also made a play for Crown, but withdrew its merger proposal in July. Since then, Star has faced its own money laundering allegations. According to the Brisbane Times,
Star “enabled” money laundering, organized crime, large-scale fraud and foreign interference within its Australian casinos “for years, even though its board was warned its anti-money-laundering controls were failing.
Queensland Attorney-General Shannon Fentiman says Queensland gaming regulators, the police and financial watchdog AUSTRAC (the Australian Transaction Reports and Analysis Centre) are investigating Star.
