Merrill Lynch has tipped Genting International as having a 75
per cent chance of winning the Sentosa integrated resort bid, although the
investment bank report goes on to say that losing the bid could send Genting's
stock down by 30 per cent to 27 cents a share. In the report, released
yesterday, Merrill Lynch scored each of the Sentosa bids on total tourism
appeal, architectural design, investment and strength of the consortium - the
same criteria as the government is using to judge the bids. The investment
bank gives Genting International a total score of 88 per cent, while the
Kerzner International-CapitaLand consortium scored 82 per cent. Eighth Wonder
came in with the lowest score, at 79 per cent. Overall, the report said that
Genting International has a 75 per cent chance of winning Singapore's second
casino licence. It added that a win for Genting could see its stock jump 22
per cent to 47 cents a share with a 30 per cent possible downside if it fails.
It said a win for CapitaLand could see the stock rise to $6.50 a share, while
a loss could see the stock drop to around $5.70 a share. Based on the process
used for the Marina Bay licence, the report reckons that a government decision
on the winning bid could come between the dates of Dec 4 and 8.
IR
