The Crown Resorts Ltd (ASX: CWN) share price has been the best performer on the ASX 200 on Thursday.
Earlier today, the casino and resorts operator's shares jumped a massive 9% to $12.68.
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Why is the Crown share price surging higher?
Investors have been bidding the Crown share price higher this morning after the company revealed the receipt of an improved takeover proposal from Blackstone.
Crown advised that the private equity firm sweetened its offer after considering non-public information provided by Crown during initial due diligence.
According to the release, Blackstone has tabled a non-binding $13.10 cash per share offer, up 4.8% from its previous offer of $12.50 cash per share in November.
The good news for the private equity firm is that this offer has gone down well with the Crown Board on this occasion. The previous offer did "not represent compelling value for Crown shareholders" according to the Board last time.
However, this time around the "Board's current unanimous intention would be to recommend the proposal" if Blackstone makes a binding offer "no less than $13.10 cash per share." This would remain subject to there being no superior proposal and the Independent Expert report concluding that it is in the best interests of shareholders.
In the meantime, though, the company has told its shareholders that they do not need to take any action in relation to the revised proposal. It also warned there is no certainty that the discussions between Crown and Blackstone will result in a change of control transaction.
What about Star?
All eyes will be on Star Entertainment Group Ltd (ASX: SGR) in the coming days and weeks. It was interested in a merger with Crown before withdrawing its offer due to the uncertainty caused by the Royal Commission into Crown Melbourne.
Star has previously suggested that a deal could unlock estimated cost synergies of between $150 million to $200 million per annum. Don't be surprised if it returns with a new merger proposal.
