Star Entertainment says Hard Rock-led group weighs bid, shares surge
Business
Star Entertainment says Hard Rock-led group weighs bid, shares surge
(Reuters) - Star Entertainment (SGR.AX), opens new tab said on Monday a consortium led by Florida-based Hard Rock Hotels & Casinos is considering a bid for the cash-strapped Australian firm, sending its shares 20% higher.
A potential takeover by entertainment giant Hard Rock would provide a much-needed financial lifeline to Star, which has been plagued by a regulatory inquiry into its flagship Sydney casino operation and an executive exodus.
Star, which had a market value of A$1.29 billion ($863.66 million) as of Monday's close, said it has been approached by a consortium of investors which includes Hard Rock Hotels & Resorts (Pacific).
The company said it understands Hard Rock Hotels is a local partner of Hard Rock.
Earlier in the day, Star said it had received "inbound interest from a number of external parties" but flagged none of them had yet resulted in "substantive discussions".
