In what might be more of a consolation prize, the Star Entertainment Group Ltd (ASX: SGR) share price has rallied 9% over the past week.
Shares in the casino operator are up 14% to 56 cents apiece from the week's low. This is a market-trouncing performance, though the origins of the optimism caught the attention of the Australian Securities Exchange yesterday.
The exchange issued Star Entertainment a speeding ticket yesterday. Star has responded to the request for an explanation today.
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Buyers wager on takeover talks
There's no shortage of stimulus to move the Star Entertainment share price these days. Shrouded in regulatory investigations, the Australian casino operator bounces around headlines like a steel sphere in a pinball machine.
It seems the company knows as much, blaming the abnormal increase in share price and volume on a recent article published by The Australian. While the ASX price query response doesn't mention the article by name, it appears they're referring to a piece titled, 'Revealed: The four bidders circling for Star casino buyout'.
The article suggests that four separate parties have recently kicked Star Entertainment's tyres, contemplating an acquisition of the troubled company. Although the piece states these talks have 'largely gone cold,' the mere contemplation might have been enough to rejuvenate interest in the Star Entertainment share price.
Star states in its ASX response, "[…] there have been various media articles speculating on potential corporate activity involving [Star] and the various financial challenges being confronted by [Star]."
The company further added:
[Star] also notes that the report of Mr Adam Bell SC in relation to the inquiry into the suitability of [Star] in New South Wales is due to be provided to the NSW Independent Casino Commission on 31 July 2024 with the public release of that report sometime thereafter.
In neither of these statements does the casino operator confirm or deny recent takeover discussions.
Next key update for the Star Entertainment share price
As mentioned above, tomorrow, the NICC will receive the final report on whether Star should hold a license to operate in NSW. Investors hope the Bell Inquiry won't go as far as recommending that Star's casino license be removed.
Some think the outcome will be an extension of the regulator's imposed special manager to oversee operations. Presently, Nicholas Weeks is watching over Star until 30 September.
Whichever way the decision goes, all eyes will be on the Star Entertainment share price.
In the meantime, the company's full-year results are expected to drop on 26 August. Consensus forecasts have Star posting $1.68 billion in revenue and a $54.9 million loss for the 12 months ended 30 June 2024.
