General Industry

Star Shares Fall As Hard Rock Denies Takeover Interest

By Reuters
Star Shares Fall As Hard Rock Denies Takeover Interest

Hard Rock International, the chain that runs the storied Hard Rock Cafe hotels and restaurants, has denied any involvement in a takeover bid for embattled Star Entertainment, sending the Australian casino operator's shares down 10% on Tuesday.

Star on Monday said it had received 'interest' from a group of investors including Hard Rock Hotels & Resorts (Pacific), lifting shares up 20%.

'Proposed Bid'

However, confusion around the identity of the group sent shares down on track to mark their worst day in over a month.

'We want to make it clear that Hard Rock International is not involved in, nor has it authorised, any discussions, activities or negotiations on its behalf in connection with a proposed bid for Star,' the Florida-based chain said on Monday, adding that it had not 'authorised the use of the Hard Rock brand in connection with any proposed bid for Star by any third party.'

Confusion

KCM Trade chief market analyst Tim Waterer said Hard Rock International's statement "has taken some wind out of the sails" of Star's stock as investors try to figure out who the possible suitors for Star are.

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The Australian casino operator had earlier said that Hard Rock Hotels & Resorts (Pacific) was a local partner of Hard Rock Hotels and Casinos, but later said they had not heard directly from Hard Rock International.

Fresh Capital

Reuters could not immediately get in touch with Hard Rock Hotels & Resorts (Pacific).

The Australian Financial Review on Monday had reported that Hard Rock had made an offer to take control of Star and the proposal included injecting fresh capital into the cash-strapped company.