Crown Resorts rejects $6.5b Blackstone bid

Australian casino operator Crown Resorts Ltd. has rejected a takeover offer from Blackstone Group, which owns 10 percent of Crown, saying the proposal undervalued the company and presented too much regulatory uncertainty. In addition, the firm is looking into another proposal.

Star Entertainment Group last week proposed an all-stock merger with Crown. The new cash offer puts an $8.4 billion value on Crown, and would create a $12 billion casino and entertainment company listed on the ASX.

“A merger of The Star and Crown would result in significant scale and diversification and unlock an estimated $2 billion in net value from synergies,” said John O’Neill, Star chairman. “With a portfolio of world-class properties across four states in Australia’s most attractive and populated catchment areas and tourism hubs, the combined group would be a compelling investment proposition and one of the largest and most attractive integrated resort operators in the Asia Pacif