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Burswood Criticizes PBL's Plans

AUSTRALIA – As reported by the (Australia) Age: "Publishing and Broadcasting Ltd may be the odds-on favourite to win its $580 million bid for the remaining shares in Burswood, but the Perth-based casino operator indicated yesterday it would not be giving its potential suitor an easy ride.

"Burswood released its unaudited results for the first 10 months of this financial year showing a strong improvement in its performance compared with last year's results, on which Kerry Packer's PBL has based its valuation.

"Burswood also offered a cautious rebuke to PBL's plans to freeze dividends and pay down debt if it gets control of the company but falls short of the 90 per cent minimum required for compulsory acquisition.

"Burswood questioned who would benefit from this, given that the current low interest rate environment favoured higher debt ratios than Burswood's.

"…The company recommended investors take no action while the board considers its options…"

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