Investment giant Blackstone has made a $6.2 billion bid for Australian firm Crown Resorts, making its bid more acceptable as its rival for the deal struggles with regulatory problems.
The A$12.5 per share offer is Blackstone’s third proposal that has boosted Crown’s share by 17%, but the stock is still below the offer price, suggesting there is some doubt that the deal will happen, but the offer puts Blackstone in a strong position to win the battle over the Crown, which has faced devastating investigations of mismanagement in every state in which it operates, as well as suffering from prolonged quarantine due to the outbreak of the Corona virus.
Star Entertainment, the Australian company contending to take over the Crown, has pulled out of its bid due to uncertainty over its regulatory problems and is now facing accusations of mismanagement.
Crown is still facing a public investigation into management and money laundering, as well as a federal investigation into anti-money laundering, and the latest investigation indicated last month that it would keep the company operating under supervision.
Crown favored Starr’s offer over the previous Blackstone offer, but Star’s problems threaten to thwart any attempt to reopen talks, given that Blackstone’s new offer matches the value of Star’s cash offer.
It is worth noting that Blackstone has witnessed many deals campaign this year, including buying and selling of various business projects. Read more [ESR and GIC buy Blackstone’s Logistics Property Portfolio in Australia for $2.9B] and [Allstate Sells Most of its Life Insurance Business to Blackstone for $2.8B].