Only hours after announcing takeover talks Wynn Resorts Limited (NASDAQ: WYNN) has announced the deal is off with Crown Resorts Ltd (ASX: CWN).
Crown Resorts is one of Australia’s largest gaming and entertainment groups. It operates two integrated resorts in Melbourne and Perth. Crown also fully owns and operates Crown Aspinalls in London, one of the high-end licensed casinos in the West End entertainment district. It is currently developing Crown Sydney at Barangaroo.
Why the Crown share price was up 20% yesterday
Crown announced yesterday that it had received a takeover bid from Wynn with an implied value of $14.75 per share.
Crown said yesterday that “the proposal is subject to a number of conditions including due diligence, Wynn obtaining all necessary regulatory approvals and a recommendation by the Crown Board. It is stated to be preliminary, confidential, non-binding and indicative.”
In response to the announcement, the share price rose 19.67% to close at just over $14 per share.
Wynn cancels talks only hours after confirming
Wynn made two SEC filings yesterday. The first confirmed the discussions with Crown. The second announced the end of discussions.
While all the details are not yet known, it seems Wynn was displeased with the public announcement made by Crown.
“On April 9, 2019, Wynn Resorts, Limited (WYNN) issued a press release announcing that, following the premature disclosure of preliminary discussions, Wynn has terminated all discussions with Crown Resorts Limited concerning any transaction,” they said in the filing.
Overnight, Wynn shares were down 3.86%.
Crown is expected to make an announcement this morning in relation to the discussions.
[ls_content_block id=”14948″ para=”paragraphs”]
Disclaimer: At the time of writing, Max does not own shares in any of the companies mentioned.
