US hospitality giant Hard Rock International has denied rumors that it is planning to make a bid for the Australian casino giant The Star Entertainment Group. The speculations ran wild after some reports that a consortium of parties including Hard Rock’s Pacific branch had supposedly expressed interest in the embattled Australian company.
Hard Rock International to Take Legal Action Amid Acquisition Speculations
In a recent statement, Hard Rock International noted it is perplexed about these claims. The company emphasized it has not authorized any discussions or negotiations in connection with a potential acquisition of The Star, reported The Australian.
Hard Rock International further added that it is going to take legal action to protect the reputation of its brand as no third parties have been authorized to associate Hard Rock with a potential bid for The Star. The company also highlighted that only official company communication channels should be utilized for accurate information.
The Star Entertainment Group announced earlier that external parties have indeed expressed interest in acquiring the company. However, The Star noted that there were no substantive discussions in connection with the proposal.
Still, The Star provided information that part of the consortium that expressed interest was a local partner affiliated with Hard Rock International.
After the initial announcement from The Star, the company shares surged but following the statement dismissing the association of Hard Rock International with any potential bid drove the share price down again.
The Star Faces Scrutiny: Second Probe Into Casino License Suitability
The Star has been embroiled in a long-lasting investigation into violations of anti-money laundering rules and ties with Asian junket operators. The company is still under scrutiny from Australian gambling regulators.
The company is currently facing a second investigation into its suitability to hold a New South Wales casino license. This is due to governance and compliance issues, which were uncovered during the first Bell report. The initial investigation into The Star led to many implications for the gambling operator, including a record fine.
Now the company has six months to prove its suitability and prevent permanent license loss. According to plans, The Star will implement remediation measures. The Bell Two inquiry will focus on financial obligations and remediation efforts with hearings held in camera. The results will help the New South Wales Independent Casino Commission (NICC) make a decision regarding the future of the embattled operator.