![]() Its founder, Steve Wynn, resigned as chairman and chief executive in February 2018 after claims of sexual misconduct, and has sold his stake in the company.Ĭrown, too, has battled controversy in the past three years. Wynn Resorts Ltd runs several casinos in the United States and Macau. It has attributed the slump to slowing economic growth in China, where big gamblers who travelled to Australia are now less likely to be in the mood to gamble. Wynn then issued two statements, first confirming the talks, and, a few hours later, stating that they had ended.Ĭrown did say, before Wynn walked away, that there was no certainty of a deal.Ĭrown’s value has fallen 20% since mid-2018 as profits have fallen short of expectations. It added that Crown’s board had not yet considered Wynn’s latest offer. ![]() “ management’s experience with acquisitions is limited, so when you target synergies it’ll be nice to have more of a track record for such a large transaction,” said Roth Capital Partners analyst David Bain, calling the termination of the deal talks a positive development for Wynn.Īfter the Australian Financial Review revealed Wynn’s takeover approach, Crown not only confirmed the confidential talks on Tuesday, but also disclosed the price that Wynn was offering. In this case, Wynn’s inexperience with pursuing big deals also likely played a factor, some analysts added. This can make deal negotiations more difficult by emboldening acquisition targets to drive a hard bargain, analysts said. Crown shares jumped as much as 22% on the news. Wynn’s backtracking illustrates how media leaks of deal talks can test the resolve of potential acquirers. “Crown notes that Wynn has announced that it has terminated all discussions with Crown concerning any transaction,” Crown said. That offer would have valued Crown at around $10bn.Ĭrown confirmed the development on Wednesday in an ASX statement. Crown, which owns casinos in Melbourne, Perth and London and will soon open another in Sydney, revealed that the offer had an implied value of $14.75 per share, to be paid 50% in cash and 50% in Wynn shares.
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