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FIVE at FIVE AU: ASX in the red as Hard Rock says no to The Star

Published 21/05/2024, 04:05 pm
© Reuters FIVE at FIVE AU: ASX in the red as Hard Rock says no to The Star
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The ASX is in the red today. The S&P/ASX200 dropped 12 points or 0.15% to 7,851.70.

Over the last five days, the index has gained 1.64% and is currently 0.72% off its 52-week high.

The bottom-performing stocks in this index are James Hardie Industries PLC and The Star Entertainment Group LTD, down 12.63% and 7.41% respectively.

It was a mixed bag today across the sectors. Materials was the worst performed, down 0.84%, with Healthcare losing 0.69%. On the upside was Information Technology with a 1.27% gain, followed by Industrials which gained 0.79%.

Looking at the small cap sector, the S&P/ASX Small Ordinaries gained 0.32% today and over the last five days is 1.26% higher.

Between a rock and a hard place

Star fell after US hospitality giant Hard Rock International quashed acquisition rumours.

“We want to make it clear that Hard Rock International is not involved in, nor has it authorised, any discussions, activities or negotiations on its behalf in connection with a proposed bid for Star,” it said in a statement.

“Hard Rock International has similarly not authorised the use of the Hard Rock brand in connection with any proposed bid for Star by any third party.

“Any misuse of the Hard Rock name in unauthorised 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.”

On Tuesday, The Star clarified that it had not received any proposal from Hard Rock International. However, the company did acknowledge receiving an initial approach from a consortium that included Hard Rock Pacific.

“As noted yesterday, The Star has not received any proposal directly from Hard Rock International. 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,” The Star stated.

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