Star Entertainment Group Ltd. shares fell amid confusion over the validity of a takeover proposal that it said came from a group backed by Hard Rock Hotels & Resorts (Pacific).
The stock dropped as much as 10% in early trading Tuesday, before trading down 2.8% at 10:53 a.m. local time. The retreat leaves Star with a market value of A$1.5 billion ($1 billion).
The shares had surged 20% on Monday amid expectations of a bidding war for the troubled Australian casino operator. Star had disclosed that it had received approaches from several suitors, and said one of the possible buyers was a consortium that included Hard Rock Hotels & Resorts (Pacific). Star described the entity as a local partner of Hard Rock Hotels and Casinos.
