On Sunday Night, US private equity group Blackstone lodged an approximately 8 billion dollar bid to buyout James Packer’s Crown Resorts. The bid, which valued individual shares at $11.85 came as a surprise to some. But it may end up being the first of many bids which attempt to buy out the corporation. According to the Australian Financial Review, at least one shareholder has ‘knocked back’ the bid and claimed it undervalued the company.
The bid also comes days before Victoria begins a Royal Commission into the company, following in the footsteps of NSW and WA. Crown Casinos have come under increased scrutiny, with the NSW reporting claiming the Bangaroo casino was ‘not suitable’ to hold a gaming license.
While some may believe that this buyout could be the key to their troubles, the reality is it is unlikely to solve anything.