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Packer's Goal Halts Burswood's Hand

AUSTRALIA – As reported by the West Australian: "Kerry Packer's insistence on winning 90 per cent control of Burswood is shaping as the last sticking point to securing the support of the casino group's reluctant directors.

"Burswood dashed market expectations of a response to the Packer-led Publishing & Broadcasting Ltd's sweetened $1.46 a share offer yesterday, instead leaving investors hanging on Monday's advice to take no action until further notice.

"…Despite Monday's 6¢ a share increase, Burswood investors who sell into the bid will receive only the original offer of $1.40 unless PBL gets acceptances of more than 90 per cent.

"However, that cannot happen because three of Burswood's biggest institutional shareholders - PM Capital (7 per cent), AMP (5 per cent) and Colonial First State (2 per cent) - have already publicly declared they will not accept $1.40.

"Under so-called 'truth in takeovers' rules, the three cannot accept PBL's offer until it passes the 90 per cent threshold - an impossibility given their combined 14 per cent stake. Dropping the condition would allow all three to accept the bid, potentially paving the way for Burswood to recommend the offer…"

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