Shareholders enjoy handsome takeover bids Lex Hall | 24 May 2021Text size
Shareholders in several ASX companies have enjoyed handsome takeover bids, with this month’s bid for Crown Resorts the latest to be launched following a strong start to the year.
Asset managers say other takeover bids are likely, with private equity’s huge stores of cash and the low cost of borrowing making bids easier as companies seek growth by joining with others.
Private-equity firm Blackstone and casino operator Star Entertainment Group (ASX: SGR) have both bid for gaming group Crown Resorts (ASX: CWN). Morningstar analyst Angus Hewitt says another bid for narrow-moat Crown is likely after the company rejected Blackstone s revised bid of $12.35 cash per share. Morningstar’s fair value estimate remains unchanged at $12.14, compared to its current price around $12.90, up from around $10 before Blackstone’s first bid in March.
âLong maybesâ plaguing business desperate to get things done
Business by Dan Knowles
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Subscriber only Desperate Queensland business leaders have called for an end to the long maybes and State Government delays they fear will knobble the state s bounce-back out of COVID. The cost of doing business in Queensland could rise as much as 30 per cent in construction and infrastructure with the expansion of new industrial relations rules, builders warn. Industries across the board are warning of a jobs cliff, with shortages in critical areas, including vacancies for 4400 car mechanics statewide and farmers are having to dump millions of dollars worth of crops because they cannot find anyone to pick them - when Queensland has among the highest unemployment in the country.
Business by Dan Knowles
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Subscriber only Queensland is in the middle of a series of massive infrastructure projects that will pour billions of dollars into the state and set it up for a post-Covid boom, a roundtable of the state s most influential leaders assembled by The Courier-Mail say. Inland Rail is doing the planning work that will soon see the project cross from NSW into Queensland with $7 billion being spent and creating 12,000 jobs. It comes as tunnel work continues on Cross River Rail, with 12 work sites going full bore across the city centre while construction continues on the $3.6 billion Queens Wharf and The Star precinct.
Crown Resorts reject Blackstone s bid18/05/2021|8min
Rejecting Blackstone’s proposal “does weaken Crown’s hand” to get a greater offer out of The Star Entertainment Group but it is the most likely move for Crown Resorts, according to the Motley Fool’s Scott Phillips.
“It is a remarkable way the board has played this particular saga, Packer, the board, hard to know who’s exactly doing what, but it has been a really, really impressive play so far,” he told Sky News.
“They waited until Star of course turned up with a potential alternative proposal then knocked Blackstone back.
“If the board plays it well, and or James Packer … there could be real gains for Crown shareholders.
PwC, Deloitte, McKinsey, BCG win Defence consulting work
May 18, 2021 – 12.31pm
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Department of Defence entered into contracts worth $21.5 million with four consultancies for a range of services.
PwC won a nine-month contract, worth $9.4 million, to provide program management services to the
Department Of Defence.
Department of Defence
Deloitte won a one-year contract to work on a health program for the
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McKinsey won an eight week, $1.4 million contract to analyse the affordability of the Hawk 127 lead-in fighter training system for the
Department Of Defence.
Crown Resorts. Star has identified $150 million to $200 million in savings over two years that can happen if the casino groups are combined. Bain has separately confirmed these figures.