23.032018Wynn Cuts Stake after Settlement
Steve Wynn reduces his stake in the multi-billion casino firm he developed after settling a bitter, 6-year court case with his ex-wife, an act that brings the casino closer to becoming a purchase target.
$2.6 Billion Settlement
Steve Wynn resigned in February as the chief executive and chairman of the casino firm that bears his name.
Wynn Resort took a bold step that would eventually enable him to terminate his status as the firm’s biggest shareholder.
Previously, he couldn’t lower his casino stake because of a complex shareholder contract that existed between him, his ex-wife, and a former business partner that was drafted in 2010.
On 8th March, the Resort moved to resolve the problem by agreeing to pay $2.6 billion to settle the case with Universal Entertainment Corporation, the business partner.
Wynn Sold 4.1 Million Shares
According to a regulatory that was filed on Thursday, Wynn sold 4.1 million shares in the firm at $180 per share. The sale brought his share down by 4.2 percent to stand at 7.8 percent, lower than his ex-wife’s share in the firm.
The sale, together with the relaxing of a shareholder contract that prevented Elaine (his ex-wife) from lowering her 9.3 percent share, increases the possibility of an acquisition of the Las Vegas-based Resort.
The couple’s sour court battle also heightened concerns about the firm’s handling of harassment allegations against Wynn that is still under investigation and that could lead to him being declared unfit to be the biggest shareholder in the firm.
Wynn Resort shares fell by 2.9 percent to stand at $178.92 on Wednesday in New York and have averagely gained 6.1 percent since the start of the year.
Elaine Wynn May Seek Talk
Elaine said early this week that she might seek talk with the firm manages over management, business, capital structure, allocation, strategy, corporate governance board compositions, among other matters.
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