News: CWN UPDATE 1-Australia's Star Entertainment makes $7.44 bln bid for rival Crown

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May 10 (Reuters) - Australian casino operator Star Entertainment Group (SGR) said on Monday it had proposed to buy rival Crown Resorts Ltd (CWN) in a deal valued at more than A$9.48 billion ($7.44 billion).

The country's No. 2 casino group offered 2.68 of its shares for each Crown share, implying a potential value of over A$14 a share based on its estimate that its share price would be worth more than A$5, said Star, whose shares last closed at A$3.91.

Star's approach includes a cash alternative of A$12.50 per share for up to 25% of Crown. The target company's shares closed at A$12.12 on Friday.

The announcement came minutes after U.S. private equity firm Blackstone Group BX.N raised its takeover offer for Crown to A$12.35 per share.

($1 = 1.2739 Australian dollars)