Market is being very cautious. The Australian yesterday also had a piece on Star manouvering to organise a bid.CROWN RESORTS LIMITED (CWN) was upgraded to Outperform from Neutral by Credit Suisse, B/H/S: 2/1/0
Credit Suisse expects Blackstone’s $12.50 cash bid for Crown Resorts will be modified and then accepted by the board, notwithstanding a competing bid. Las Vegas Sands is known to be interested in acquisitions in Asia.
What Blackstone is offering could be accepted because what A&NZ casinos can offer (synergy and property restructure) is subject to execution risk, Credit Suisse notes. If the Victorian Royal Commission recommendations are accepted, Packer has to sell his 36%.
The broker believes the bid can be lifted to $13.00 and hence has raised its target to that price, up from $9.80, and upgraded to Outperform.
