KEY POINTS:
Pressure is mounting on the SkyCity board to reveal the details of a secret approach to buy its shares.
Investors are unhapppy with the company's handling of a prospective bid revealed in a disclosure to the stock exchange on Friday.
The declaration has sent its share price soaring and two shareholders - Brook Asset Management and Tower Asset Management - say if the approach is rejected by Sky's board of directors they want to know the reasons why.
Brook Asset Management holds around 8 million shares in SkyCity Entertainment.
Partner Simon Botherway said he would be approaching the company today to obtain some disclosure about the potential bid. "If there was an approach we would like to know what it was - even if it was rejected by the board. Shareholders should have the ability to see that," he said.
Tower Asset Management owns around 6,788,000 shares. Analyst Paul Robertshawe said that, apart from any failure to meet standard conditions, SkyCity should release the reasons for the offer not proceeding.
SkyCity has said the identity of the party who has indicated interest in taking over 100 per cent of shares is confidential.
A private equity company - TPG Newbridge - has emerged as the likely identity of the bidding interest declared to the NZX.
A spokesman for the company - made up from Texas Pacific Group and its Melbourne based affiliate Newbridge Capital - declined to comment about what it said was rumour.
The company is in the process of buying Harrah's Casino in the US in a US$27.8 billion ($37.5 billion) deal.
Another US based private equity firm - Providence Equity Partners - is interested but said it was not the unnamed party in Friday's declaration.
Another name suggested to the Business Herald is the Malaysian Genting Berhad Corp with a reported value of US$7.9 billion and which owns casino interests.
SkyCity had said that if an offer proceeded the potential bidder had indicated a significant premium on the share price.
SkyCity refused to comment yesterday.
Prior to the announcement SkyCity shares stood at $4.35. They rose as high as $5.56 on Friday but they have since slipped back. They ended the day down 1c at $5.07 yesterday.
