Wynn calls off $10bn Crown takeover talks

Wynn Resorts has abruptly ended talks over its $10 billion takeover proposal for Crown Resorts, blaming the Australian casino operator for revealing the potential deal too early.

Crown shares on Wednesday gave up almost half the 20 per cent they gained when the James Packer-controlled casino operator announced the proposed cash-and-scrip deal a day earlier.

The Las Vegas gambling giant pulled the plug on talks less than 24 hours after Crown had made them public.

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

Crown confirmed the development on Wednesday in an ASX statement.

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

The Wynn 50-50 cash-and-stock proposal had an implied value of $14.75 per share, representing a 25.6 per cent premium to the stock’s $11.74 price before Crown revealed it.

Crown shares jumped to $14.05 but, by 1035 AEST on Wednesday, had slipped back 8.7 per cent to $12.83.

Crown, majority owned by Mr Packer’s Consolidated Press Holdings, has operations in Melbourne, Perth, and London, and has a luxury resort development in Sydney’s Barangaroo due to be completed in 2021.

By AAP

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