Hard Rock International has dismissed rumours of a potential deal to acquire Australian casino operator Star Entertainment Group.
Media reports over the weekend suggested that there was strong interest for a deal to acquire Star, with the company issuing a statement on Monday identifying Hard Rock Hotels & Resorts (Pacific) as being part of a consortium of investors that have expressed interest in a potential transaction.
“The Star confirms that it has not received a proposal directly from Hard Rock Hotels and Casinos,” the company said in the statement. “However, the Company has received inbound interest from a number of other external parties regarding potential transactions including a consortium of investors which includes the entity Hard Rock Hotels & Resorts (Pacific), which The Star understands is a local partner of Hard Rock.”
This prompted a surge in the company’s share price on Monday, as well as a strong denial from Hard Rock.
“We want to make it clear that Hard Rock International is not involved in, nor has it authorized, any discussions, activities or negotiations on its behalf in connection with a proposed bid for Star,” said the company. “Hard Rock International has similarly not authorized the use of the Hard Rock brand in connection with any proposed bid for Star by any third party.
“Our brand is built on a legacy of integrity, excellence, and a commitment to our guests, partners, and team members worldwide. Any misuse of the Hard Rock name in unauthorized business dealings is taken very seriously. We are currently investigating this matter and will pursue all necessary legal actions to protect our brand and reputation.”
The strong denial caused shares in Star Entertainment Group to fall by 7.41 per cent to AUD$0.50 per share in Sydney Tuesday, reversing some of Monday’s 20 per cent gain.