KUALA LUMPUR, Dec. 3 -- Analysts have warned that Genting Berhad's (GENT) recent takeover of Genting Malaysia (GENM) is unlikely to lead to full privatisation, while the deal could heighten credit rating downgrade risks for both companies.

Genting increased its stake in GENM from 50 per centto 73.13 per centafter acquiring an additional 23.13 per centat MYR 2.35 per share, worth a total of MYR 3.1 billion (US$750 million). However, the final stake fell short of the more than 75 per centthreshold needed to delist GENM from the stock exchange.

CreditSights analysts expressed surprise at the strong shareholder participation, which exceeded expectations. They had anticipated Genting would acquire only 10 per cent to 15 per centadditional st...