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Crown Limited (ASX:CWN) says the board of directors at Echo Entertainment Group Limited (ASX:EGP) must work with the NSW and Queensland governments to remove a shareholding cap preventing the acquisition of more than 10 per cent of Echo shares. That’s according to a report by The Australian.
Crown is rumoured to be planning a takeover of Echo, but this “poison pill”, as described by a Crown spokesperson, appears to be in the way.
In June, Crown said it had bought a 4.9 per cent stake in Echo and Tabcorp Holdings Limited (ASX:TAH), but at the time, said it wasn’t interested in increasing its interest in either company.
The Australian suggests that Crown may have had a change of heart.
In the 2011 financial year Crown boosted its net profit to $336 million.
