Wynn Resorts has taken its offer for Crown Resorts off the table, just a day after confirmation of a potential takeover sent shares in the Australian operator soaring almost 20%.
The deal would have been worth a possible US$7.1 billion.
Las Vegas-based Wynn said in a statement on Tuesday morning, “Following the premature disclosure of preliminary discussions, Wynn Resorts has terminated all discussions with Crown Resorts concerning any transaction.”
Before the abrupt termination of the negotiations, Bernstein analysts were cautiously optimistic about the prospects of a Wynn-Crown combination: “While we are somewhat perplexed as to why Wynn would be interested in acquiring Crown as an acquisition deviates from historical organic growth strategy, we see there may be merit in an acquisition. There may be solid synergies with respect to Chinese customers.”
They added that “a deal could also signal to Japan that Wynn is a larger, more serious candidate and Massachusetts may think twice about implementing harsh conditions on the license.”
When news that Wynn had terminated its offer to Crown came down, Bernstein sent an additional note asserting that “at this point, there’s no guarantee that any potential discussion around the deal will not resurface.” (AGB)