Duel for the Crown round two: Blackstone’s offer rejected

The all-stock merger proposal of Blackstone was denied again after the bid was enhanced by 4%, increasing the probability of an all-Star merger

Blackstone and Star’s war for Crown Casinos has seen a pushback for Blackstone. An offer by the US private equity firm Blackstone to acquire Crown for AU$12.35 per share (AU$8.36 billion in total) was declined by Crown, stating that the offer undervalues Crown and goes against the interest of its shareholders.

This is Blackstone’s second offer to be declined. The revised price had been lifted 4% from former AU$11.85, however the insistence to deduct shareholder dividends from the indicative offer price deterred Crown from accepting the new offer.

This resets the chances of Australian gaming giant Star to acquire its old rival Crown, which would create a casino monopoly in Western Australia worth AU$12billion. Crown’s property to be acquired includes the only licensed casinos in Perth and Melbourne, as well as a AU$2.2 billion dollar resort in Sydney, gamblinginsider.com reported.

Crown is seeking a successor who can offer the best possible outcome for its current shareholders, after being stripped of its operating licence due to illegal activities, including money-laundering. Star and Blackstone are fiercely battling over the gambling giant’s assets, with offers of each side having been declined before. Star’s current merger proposal is under review, and further information was requested by Crown’s side.