This was published 5 years ago
No Wynn situation: Crown shares plunge as takeover talks collapse
By Nick Toscano
Shares in the James Packer-backed Crown Resorts have opened nearly 9 per cent lower after talks about a potential takeover by Las Vegas casino operator Wynn Resorts collapsed overnight.
Crown, Australia's biggest casino operator, revealed on Tuesday it was in "confidential discussions" with Wynn about a takeover. Wynn had made Crown a cash-and-shares offer with an implied value of $14.85 a share.
James Packer is Crown's biggest shareholder, with a 46.1 per cent stake.Credit: AAP
But in a terse statement issued just hours after news of the takeover offer broke, Wynn Resorts said it was ending discussions with Crown.
"Following the premature disclosure of preliminary discussions, Wynn Resorts has terminated all discussions with Crown Resorts concerning any transaction," the company said in a statement on Tuesday morning in the US.
The ASX-listed Crown Resorts also confirmed to the stock market on Wednesday morning that Wynn had "terminated all discussions" about a potential change-of-control transaction.
Crown shares, which had soared nearly 20 per cent on news of the takeover talks on Tuesday, fell as much as 10 per cent in early trade. At 11.45am AEST, they are 7.5 per cent lower at $13.00.
The billionaire Mr Packer is Crown's biggest shareholder, with a 46.1 per cent stake.