Breakingviews - Capital Calls - Blackstone rolls the dice for Crown

  • 4/13/2021
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HONG KONG (Reuters Breakingviews) CROWN JEWELS. Blackstone’s poker face just slipped. The buyout shop on Tuesday added fresh details to last month’s $6.1 billion bid to buy troubled Australian gaming group Crown Resorts. The would-be buyer looks eager to close. The offer is no longer subject to arranging debt financing. Blackstone is adding an ambitious timeframe, too, expecting to secure the approval of three regional watchdogs by September – a process that could easily be expected to take far longer. Steve Schwarzman’s firm also indicates it’ll walk if any Crown casino looks at risk of losing its license. This could inspire impatient investors to press for a quicker response from the board. Crown’s largest shareholder, founder James Packer’s Consolidated Press Holdings, already indicated that it is open to considering the offer, which prices the group at A$11.85 per share, well above the A$8.15 Blackstone paid when it bought an initial 10% stake last year. Ultimately, though, it’s the regulators who hold the cards. (By Katrina Hamlin)

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