May 23 (Reuters) - Australian asset manager Perpetual

has increased its stake in embattled casino operator

Star Entertainment, an exchange filing showed on

Thursday.

Perpetual has increased its stake to 8.81% from 7.402%, the

filing showed.

The embattled Australian company's shares have been volatile

recently, jumping after its top shareholder, billionaire Bruce

Mathieson, increased his stake in the firm to 9.59% from 8.21%

on April 18.

Star closed 20% higher on Monday after it said a consortium

that includes a local partner of Florida-based Hard Rock

International is considering a bid for the cash-strapped

Australian firm.

However, shares of the casino operator fell the next day

after the U.S.-based entertainment giant denied any involvement

in a takeover bid for the firm.

Star's shares have dropped 6.8% year-to-date.

Star Entertainment has been undergoing regulatory inquiries

to keep its gaming licence at its Sydney casino, with the final

report due on July 31.

The firm had undergone management changes earlier this year.

Perpetual had said in early May that it is to become a

standalone, global multi-boutique asset management business as

global investment firm KKR & Co ( KKR ) is buying out its wealth

management units.

(Reporting by Shivangi Lahiri in Bengaluru; Editing by Nivedita

Bhattacharjee and Mrigank Dhaniwala)