Crown rejects $8.4 billion takeover bid from Blackstone

Crown Resorts has rejected an $8.4 billion takeover bid from US private equity firm Blackstone, claiming its offer undervalues the gaming giant.

In a post to shareholders, Crown said its board carefully considered the proposal which offered to buy the business at $12.35 per share.

The board came to an agreement that Blackstone's offer "fundamentally undervalues" Crown and is not in the best interest of shareholders.

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Crown said its $2.2 billion Crown Sydney investment at Barangaroo is yet to provide a meaningful contribution to its earnings.

It also expects to generate significant windfall from the sale of apartments within Crown Sydney.

As a result, the gaming giant said the offer undervalued the long-term proposition Crown offers, as well as providing an "unacceptable" level of uncertainty for shareholders.

A secondary proposal for a merger from rival Star Entertainment Group – which operates a casino within eyesight of the Crown Sydney building – is still being considered by the board.

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At the time of publishing Crown Resorts' share price is rebounding favourably, currently trading at $13.05.

The gaming giant's share price fell to a recent low of $6.12 in early 2020 after it was hit with a series of damaging allegations that it partnered with junket operators with links to organised crime.