May 10 (Reuters) - Crown Resorts Ltd CWN.AX :
* RECEIVES MERGER PROPOSAL FROM STAR ENTERTAINMENT GROUP
* PROPOSAL CONTEMPLATES A NIL-PREMIUM SHARE EXCHANGE RATIO OF 2.68 STAR SHARES FOR EACH CROWN SHARE
* BOARD OF MERGED ENTITY WOULD INITIALLY COMPRISE CURRENT DIRECTORS OF EACH OF CROWN AND STAR
* MERGER PROPOSAL WOULD RESULT IN PRO FORMA OWNERSHIP OF MERGED ENTITY OF 59% FOR CROWN SHAREHOLDERS AND 41% FOR STAR SHAREHOLDERS
* MERGER PROPOSAL ALSO CONTEMPLATES CASH ALTERNATIVE OF $12.50/CROWN SHARE, SUBJECT TO CAP EQUAL TO 25% OF CROWN'S TOTAL SHARES ON ISSUE
* STAR ESTIMATES THAT MERGER WOULD RESULT IN INDICATIVE COST SYNERGIES OF BETWEEN $150 MILLION AND $200 MILLION/ANNUM
* STAR ALSO INDICATED THERE IS POTENTIAL TO UNLOCK SIGNIFICANT VALUE FROM A SALE & LEASEBACK OF MERGED ENTITY'S PROPERTY PORTFOLIO