a list of conspiracy theories.........Packer card game far from...

a list of conspiracy theories.........

Packer card game far from clear
Date May 24, 2013 (3) Read later

Forget playing the tables or the slots. The biggest game in town is working out why James Packer's Crown is selling its 10 per cent stake in Echo Entertainment only a week after finally receiving regulatory approval to increase it to 23 per cent.

The first conspiracy theory is that Packer's had the wink and nod from the NSW government that his Barangaroo casino proposal is in the bag. Well-placed insiders disagree, saying the government is at least a month away from that decision.

Conspiracy theory two is that selling Echo shares will drive down the price and Packer can buy back in if Crown loses the bid for his Sydney casino/hotel.

That could be a dangerous play, as he would need to buy in from a standing start and take the risk Echo's other large shareholder, Genting, could gain approvals to increase its stake.

Once either are seen as buyers, the Echo share price would immediately spike. (Packer has previously publicly maintained he would hold on to his Echo position because it gave him optionality.)

Packer has already taken a haircut on the Echo stake, which he acquired for an average entry price north of $3.80, compared with Thursday's sale price of $3.20.

Sitting on the 10 per cent parcel until the NSW government reached a decision on Barangaroo made more sense.

Conspiracy theory three (which can't be discounted) is that Packer's Crown either wants or needs the money for a reason that has nothing to do with a second Sydney casino licence.


Read more: http://www.theage.com.au/business/packer-card-game-far-from-clear-20130523-2k41g.html#ixzz2UB7xnczI