FAILED NEGOTIATIONS OVER SALE IDENTIFY CROWN AS A TAKEOVER TARGET

Crown Resorts has flagged that it may be open to a potential takeover, even though suitor Wynn Resorts has walked away, with both Hard Rock International and Genting seen as potential bidders, according to reports.

Crown’s stock surged more than 20 percent the day after it was disclosed that Wynn had approached the board with an offer, though only lost 9.1 percent once the U.S. operator walked away. This has signalled that the market considers the company remains a potential target.

Deutsche Bank analysts pointed to Hard Rock and Genting as likely partners, according to the Star Online. The news outlet also cited David Bonnet, managing partner at Delta State Holdings Ltd. as saying a transaction may create synergies for operators in both Macau and Singapore.

“For businesses already operating in the region, it makes sense too, to consider the deal,” Bonnet was cited as saying. “Acquisition is the only way to enter a monopoly-style market.”

The Wynn deal would have been worth a possible $10 billion ($7.1 billion). But the Las Vegas-based company said in a statement on Tuesday morning that “Following the premature disclosure of preliminary discussions, Wynn Resorts has terminated all discussions with Crown Resorts concerning any transaction.”

The proposal had involved an acquisition of Crown by Wynn via a scheme of arrangement for a combination of 50 percent cash and 50 percent Wynn shares with an implied value of A$14.75 per share, a 26 percent premium to the share price before the bid was announced

https://agbrief.com/headline/crown-resorts-shares-soar-on-confirmation-of-wynn-discussions/

Source: https://agbrief.com/headline/crown-exposed-as-takeover-target-after-wynn-walks-away

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