Star report 'has no impact' on Packer bid

17 May 2012, 5:37 pm   -   Source: AAP

James Packer is expected to press ahead with his bid to grab a larger stake in Echo Entertainment, the owner of Sydney's The Star casino.

A report clearing Sydney casino The Star of any wrongdoing over its investigation of sex harassment claims is unlikely to stop James Packer's push to buy its owner Echo Entertainment.

The Star on Thursday was found to have investigated sexual harassment claims against its former general manager Sid Vaikunta "properly and thoroughly".

Larry Mullin, the chief executive of The Star's owner Echo Entertainment, said the report proved allegations made against the casino were baseless and the company had a strong culture of compliance.

Mr Packer's Crown casino recently bought 10 per cent of Echo, and was keen to take a larger stake pending government approvals.

The billionaire has been highly critical of Echo management, saying its recent woes have been all self-inflicted.

Fat Prophets senior analyst Greg Fraser said he doubted the report clearing The Star of any wrongdoing would temper Mr Packer's desire to take control of Echo.

"What James Packer seems to be agitating about is a lack of confidence generally about the way the business itself has been run and the direction of the strategy of the board," Mr Fraser said.

"I don't think it changes his argument at all and I would be surprised if the board of Echo Entertainment could use the ruling today in any way shape or form to defend its performance.

"I would think that James Packer would have every reason to continue his barrage."

Morningstar analyst Michael Wu said he expected Mr Packer to press ahead with his bid to acquire a larger stake in Echo, which holds the exclusive gaming license for Sydney.

"He is still expected to go after it," Mr Wu said.

"Sydney remains an attractive market and he does want to expand his casino portfolio."

Echo closed up one cent at $4.43, while Crown finished steady at $8.86.

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