Bahamas-based casino and hotel operator Kerzner International has amended the definitive agreement under which the company will be acquired.

An investor group led by the company’s chair, Sol Kerzner, and CEO, Butch Kerzner, announced that it has increased its offer from US$76 (£42, 60 euro) per share to US$81 (£44, 64 euro), which equates to US$3.8bn (£2bn, 3bn euro) with the assumption of US$599m (£330m, 475m euro) debt.

As a result, the company has agreed to terminate its solicitation of superior proposals and in the event of the agreement being terminated, the investor group will receive US$95m (£52m, 75m euro) as a break-up fee.

The investor group also includes Istithmar PJSC – a significant shareholder of the company – Whitehall Street Global Real Estate, Colony Capital, Providence Equity Partners, and The Related Companies, which is affiliated with one of Kerzner’s directors.

Upon closing the deal, which is expected in mid-2006, Kerzner will be a privately held group and will no longer be traded on the New York Stock Exchange. Details: www.kerzner.com