Sumary of Australia's Star Entertainment abandons $6.6 bln bid for Crown Resorts:
- AX) said it has withdrawn its all-stock proposed takeover of larger rival Crown Resorts (CWN.
- AX), valued at A$9 billion ($6.64 billion), on Friday over worries Crown may lose its licence to run its Melbourne casino.
- Australia’s No.2 casino operator said it still believes in the benefits of a deal, but was worried issues raised at an inquiry looking into Crown’s Melbourne casino could impact the embattled company’s value.
- Crown said in a statement it remains willing to engage with Star, and will continue to consider any proposal it receives.
- An ongoing inquiry was told on Tuesday Crown should be stripped of its gambling licence for the Melbourne resort, whose casino generates about three quarters of the company’s profit, due to insufficient efforts to reform its culture.
- read more Star’s decision removes a lifeline for Crown which has been trying to convince regulators it can rebuild its culture after an earlier inquiry in February found it allowed money laundering on its premises for years and declared the company unfit to open a just-built casino in Sydney.