Crown Resorts tells ASX it has no information to explain a nearly 8% share fall

Crown Resorts has told the stock exchange it has no extra information to explain a 7.7% drop in its share price on Monday and Tuesday that was sparked by allegations of criminal links made by Nine News, in parliament by the independent MP Andrew Wilkie, and raised by Attorney-General Christian Porter to the Australian Commission for Law Enforcement Integrity.

On Tuesday the ASX (Australian Securities Exchange) asked Crown to respond to articles in Nine newspapers and on its flagship TV current affairs show 60 Minutes, and to tell the market if its earnings would be affected ahead of its results later this month, and whether it was abiding by continuous disclosure laws.

Crown shares slumped from a closing price of $12.67 on Friday afternoon to a low of $11.69 on Tuesday, falling as much as 8 percent during the past two days' trading, as Wilkie used parliamentary privilege to detail new allegations of drug use, violence against women, and failure by home affairs officials to check at the border casino high-rollers who fly in by private plane. 

CommSec data shows the share price was set to fall again, by 1.9%, according to orders queued before the market opened on Wednesday. In a response sent on Wednesday morning before the market opened, Crown’s general counsel, Mary Manos, said the company was “not aware of any information concerning it that has not been announced to the ASX which a reasonable person would expect to have a material effect on the price or value of [Crown's] shares".

Manos said it had “taken into account the matters raised in media reports over recent days which make various allegations regarding CWN’s business dealings and also that the federal government has referred certain aspects of the allegations to the Australian Commission for Law Enforcement Integrity”.

She said Crown had also taken into its knowledge of its earnings for the financial year ending 30 June but “has not yet finalized its full-year results”.

In a statement to the market released late on Tuesday, Crown defended its anti-money laundering program and vetting of junket operators, which the media investigation reported have ties to criminal groups. Crown said it would also "fully co-operate" with an Australian Commission for Law Enforcement Integrity investigation ordered on Tuesday into government officials dealings with Crown. The company's Board of Directors claimed in a statement Wednesday there was a "deceitful campaign against Crown" coming from the media reports.

Crown shares were down 1.4 percent in early trading on Wednesday at $11.86. That brings the stock down almost 8 percent since Monday morning.