Discussions of a planned AU$10 billion takeover of Australian casino chain operator Crown Resorts by Wynn Resorts have abruptly come to a halt just as quickly as they started. A recent statement from Nevada-based Wynn has detailed that the deal will not be moving ahead, and will instead be scrapped for the foreseeable future.
The news of the potential acquisition deal originally landed early last week. Headlines revealed that Wynn had proposed a massive multi-billion dollar takeover of the aforementioned firm, which saw share values for Crown Resorts soar by an impressive 25.6% as the market closed on the day.
Following the news, share values surged again by around 22%, reaching a high of $14.33. They also remained over 20% higher at 11.16 AEDT, showing that investors were excited about the news of the potential acquisition of Australia’s largest land-based gambling resorts operator.
Alas, the deal was seemingly not meant to be. Mere hours after details of the takeover discussions had been revealed to the public, Wynn Resorts released another statement confirming that the proposed $10 billion deal was officially off the table.
In its announcement on the matter, Wynn noted that following the “premature disclosure” of preliminary talks, it had terminated all discussions with Crown Resorts concerning transactions or agreements of any kind.
Following the second announcement, shares in Wynn Resorts dropped by 3.9%, while Crown’s shares fell by a whopping 11% during Monday morning trading over in Sydney, Australia. The failed agreement has come as something of a blow for Wynn, which is still reeling from the sexual misconduct scandal surrounding its disgraced former founder and CEO, Steve Wynn.
Leaked data of the negotiations came as the parties were rumoured to be negotiating sensitive topics relating to the suggested acquisitions. Initially, Wynn Resorts confirmed that talks were being held in a public statement before announcing that the negotiations in question had been terminated.
Founded by Steve Wynn in 2002 and currently headed up by new CEO Matthew Maddox, Wynn Resorts is an American publicly traded corporation with headquarters in the Las Vegas Strip. The company develops and operates a chain of luxury hotels and land-based casinos, which it does both locally and internationally through its subsidiary Wynn Resorts International Ltd. Wynn Resorts employs more than 25,200 staff members around the world, and is currently listed on the NASDAQ Stock Exchange.