Aussie gaming giant Crown Resorts has rejected an $8.46 billion takeover bid from global investment firm Blackstone, but has kept the door open to receiving a higher offer.
In a notice to shareholders this morning, Crown's board said it had carefully considered the offer but did not take it as it did not represent "compelling value" for the company's shareholders.
Blackstone had originally valued Crown at $12.50 per share.
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Despite turning down Blackstone's latest offer, the Crown board has decided to offer Blackstone access to non-public information in the hopes that the investment firm will increase its bid.
"The Crown Board if of the view that the Proposal does not represent compelling value for Crown shareholders," the notice reads.
"However, the Crown board has offered Blackstone the opportunity to access non-public information to allow Blackstone to undertake due diligence inquiries on a non-exclusive basis so that it can formulate a revised proposal that adequately reflects the value of Crown.
"The provision of such information is conditional on Crown and Blackstone entering into an appropriate confidentiality agreement."
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The board assured shareholders that any discussion between the gaming giant and Blackstone does not mean a new takeover bid will be made – or accepted.
"The Crown board is focussed on maximising value for Crown shareholders and will carefully consider any proposal that is consistent with this objective," the board said.
At the close of trade yesterday Crown shares were sitting at $10.94, having lifted by more than 10 per cent over the past 12 months.
The gaming giant is still rebuilding after a number of damaging media reports resulted in a public inquiry over allegations the operator did not have sufficient checks and balances in place to prevent money laundering and use by organised crime groups.
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