Blackstone Offer For Crown Resorts Set To Fail

Equity firm Blackstone Group has almost certainly removed itself from its attempt to acquire a controlling share in Australian casino operator Crown resorts with its latest conditions.

Crown Resorts announced this week that the offer from Blackstone has been amended to say that the current $6 billion buyout is conditional on Crown not losing or having suspended its operator licenses in either Perth or Melbourne.

The operator had its license application for the flagship Sydney operation withheld following failings in money laundering and organise crime and currently there are investigations into both Perth and Melbourne casinos on their continued suitability.

However analysts believe the company will be able to hold on to both licenses following major changes to its senior management but Blackstone wants to add safety measures to a bid many on the Crown Resorts board feel undervalues the company.

The current offer from Blackstone values the operator at $6.1 billion; however MGM Resorts had an offer of $8 billion rejected in previous years. That along with the indications that if Crown Resorts continues to improve and show marked changes to its internal regulatory handling will see a return of its Sydney license then the offer from Blackstone is too low.