Wynn Resorts walks away from Crown takeover bid

The Wynn Resorts takeover bid of Australia’s Crown Resorts has been abruptly and dramatically taken off the table after news of the deal was leaked to the media this week.

The US gaming giant delivered a short and sharp media release confirming the news.

“Following the premature disclosure of preliminary discussions, Wynn Resorts has terminated all discussions with Crown Resorts concerning any transaction,” the statement said.

Loose lips certainly sunk this ship.

The deal, which Wynn clearly did not want to go public, was reported to be worth more than $10 billion.

Just three days ago Crown had confirmed talks were taking place, without releasing any details.

“Crown confirms that it is in confidential discussions with Wynn regarding a potential change of control transaction following approaches to Crown by Wynn,” Crown Resorts said.

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“No agreement has been reached between the parties in relation to the structure, value or terms of a transaction. There is no certainty that these discussions will result in a transaction.”

Crown was forced to confirm that those talks had come to an end.

“Crown notes that Wynn has announced that it has terminated all discussions with Crown concerning any transaction,” Crown said.

What’s clear is that someone made out with a lot of cash, just at the mere mention of the deal.

Crown Resorts shareholders enjoyed seeing their stock jump 22 per cent after news of a potential buy-out.

Former Crown Resorts executive chairman, James Packer, still owns 46.8 per cent of the company after resigning his post in 2018, citing mental illness.

The rumour mill has been in overdrive since the news of Wynn’s swift departure.

Was Crown using Wynn to get a jump in stock price?

Will Crown continue to entertain suitors for a buy-out?

We’ll continue to watch this space.