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Blackstone makes sweetened $6.2 billion play for Australia’s Crown

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3 years ago

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Investment giant Blackstone Group Inc made a $6.2 billion approach for troubled Australian casino firm Crown Resorts Ltd, sweetening an earlier offer as its main rival bidder is beset by regulatory problems.

The A$12.50-a-share proposal, disclosed by Crown on Friday, is the third from Blackstone and pushed Crown’s shares 17% higher. The stock was still below Blackstone’s indicative price, suggesting a degree of doubt that a deal will eventuate.

The revised offer puts Blackstone in the box seat to win control of Crown, which has faced devastating misconduct inquiries in every state it operates in, plus protracted COVID-19 lockdowns.

Rival bidder Star Entertainment Group Ltd, an Australian casino operator, has backed off its proposed deal citing regulatory uncertainty. It now faces its own misconduct allegations.

Crown still faces a public inquiry into governance and anti-money laundering compliance at its second-biggest earning casino, in Western Australia state, as well as a federal anti-money laundering investigation.

The company founded by billionaire James Packer has already acknowledged to regulators in New South Wales and Victoria that it failed to prevent criminal transactions.

The most consequential of the inquiries, which threatened to withdraw the gambling licence in Victoria behind three quarters of Crown’s profit, ultimately cleared the company last month to keep operating under supervision.

Crown had favoured Star’s buyout approach over an earlier Blackstone proposal, but Star’s troubles threaten to derail any attempt to reopen talks and Blackstone’s latest proposal matches Star’s cash option.

“Crown is a high-quality, strategic asset,” said Steve Johnson, chief investment officer at Forager Funds Management.

It was “not surprising private equity is back at the table” after it was allowed to keep its Victorian licence, but Blackstone’s offer appeared to undervalue Crown, Johnson added.

Crown said its board would consider the latest Blackstone proposal although it had not yet formed a view on its merits.

A spokesperson for Blackstone, Crown’s second biggest shareholder with 9.99% of its shares, confirmed the offer without commenting further.

A Star spokesperson said recently the company had withdrawn its Crown proposal but “as we have said consistently since that time, The Star remains open to exploring potential value enhancing opportunities with Crown”.

($1 = 1.3740 Australian dollars)

(Reporting by Byron Kaye in Sydney; Additional reporting by Sameer Manekar in Bengaluru;Editing by Vinay Dwivedi, Stephen Coates and Kim Coghill)

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Investment

S&P/TSX composite up more than 100 points, U.S. stock markets mixed

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2 days ago

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October 16, 2024

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TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 103.40 points at 24,542.48.

In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.

The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.

The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.

The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Economy

S&P/TSX up more than 200 points, U.S. markets also higher

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7 days ago

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October 11, 2024

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TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.

The S&P/TSX composite index was up 205.86 points at 24,508.12.

In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.

The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.

The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.

The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Economy

S&P/TSX composite little changed in late-morning trading, U.S. stock markets down

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1 week ago

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October 10, 2024

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TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.

The S&P/TSX composite index was up 0.05 of a point at 24,224.95.

In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.

The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.

The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.

The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.

This report by The Canadian Press was first published Oct. 10, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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