Crown puts 25% limit on Echo stake
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Casino operator Crown is seeking regulatory approval to lift its stake in rival Echo Entertainment to 25 per cent.
Crown has added the 25 per cent limit to its application to the NSW Independent Liquor and Gaming Authority and the Queensland government for an increase of its Echo stake above 10 per cent.
The regulators have accepted the condition, but are yet to make a decision on whether Crown can exceed the 10 per cent ownership level, Crown said on Wednesday.
"If Crown is eventually granted approval to increase its ownership in Echo to up to 25 per cent, then Crown would not be able to acquire additional Echo shares such that Crown's ownership interest would increase above 25 per cent without first making another application which would then be subject to further investigation and ultimately a determination by the regulators," the company said in a statement.
The changes to Crown's application comes after Perpetual was granted approval by the NSW Independent Liquor and Gaming Authority and the Queensland government to increase its potential maximum voting power in Echo from 10 per cent to 15 per cent.
Shares in Echo were five cents lower at $4.25 at 1008 AEST, while Crown lifted three cents to $8.50.