The Crown Resorts Ltd (ASX: CWN) share price is edging higher this morning after the company announced it’s allowing a prospective suitor non-exclusive due diligence despite its ungenerous bid.
Private equity firm Blackstone placed a $12.50 per share bid for Crown last month. The casino operator is giving Blackstone a look inside in hopes doing so will convince it to increase its offer.
The Crown share price has been up and down all morning but is currently $11. That’s 0.55% lower than its previous close.
Let’s take a closer look at what’s driving it on Thursday.
Crown share price falls on takeover news
The Crown share price is likely responding to news the company is letting Blackstone conduct due diligence after its third takeover offer.
This time, Blackstone is valuing the company at approximately $8.5 billion.
It’s a major step upwards from its previous offers. The fund put forward a bid of $11.85 per Crown share in March and one of $12.35 in May.
Today, Crown stated it had carefully considered the $12.50 per share offer, receiving feedback from shareholders and regulators before deciding it wasn’t great value.
However, it has offered Blackstone access to non-public information so it can revise its proposal to “adequately [reflect] the value of Crown”.
As of yesterday’s close, Blackstone’s bid represents a 14% premium on the Crown share price.
Additionally, reports fellow ASX-listed casino operator Star Entertainment Group Ltd (ASX: SGR) is preparing to make a move on its embattled peer emerged last night.
According to The Australian, Star has tapped Barrenjoey Capital Partners as an adviser, spurring some to think it might be about to pose its second takeover bid for Crown.
Previously, Star proposed an all-scrip merger wherein Crown shareholders would receive 2.68 Star shares for each Crown security they held.
The competitor’s bid also included an alternative option that would see it paying $12.50 per share for up to 25% of Crown’s stock.
Right now, the Crown share price is around 11% higher than it was at the start of 2021.