Wynn Resorts Ditches Bid to Buy Crown Casino
Crown Casino of the biggest casino operators just on our doorstep in Australia just can’t seem to catch a break lately. It looked like they were on the road to a lucrative takeover from the US casino chain Wynn Resorts but that has gone belly-up. After the dramatic exit of James Packer Crown Casino’s CEO citing stress and mental health the merger with Wynn would have been boost for the ever-scandalous Crown Casinos. Find out why the Americans pulled out before the deal had even set as we explore the various issues this whole deal was riddled with.
Wynn Resorts’ Reasons for Dumping Crown Casino
According to news from The Associated Press in Sydney, Australia, Wynn Resorts relinquished their bid because of Crown’s alleged presumptuousness. It seems the US casino resort operator was not pleased with the unscheduled leak of the deal which was in progress. The Associated Press, bluntly put it “Following the premature disclosure of preliminary discussions, Wynn Resorts has terminated all discussions with Crown Resorts concerning any transaction.” There was no follow up from Wynn Resorts to comment on the debacle. The merger would have been good for the Crown because the mere rumours of the merge pushed its share price a whole 21 percent upwards.
Business Analysts’ Reactions to the Wynn-Crown Fallout
Most analysts did not see the immediate benefit of the merger to Wynn Resorts. How Crown Casino would benefit was already obvious from the increase in share price indicated. Even though Wynn Resorts is facing its fair share of legal trouble back in the US, they aren’t struggling to make profits. James Packer former Crown CEO was projected to be a major shareholder when the merge occurred. This would have cushioned the crash the casino operator felt when they had to withdraw their plans for global expansion after the illegal Chinese gambling scandal.
It is not clear where Crown Casinos intends to go from here. Keep updated with this story and other casino news stories on our blog. While you wait for the next update try out the popular NZ online casinos, we recommend which aren’t dealing with any scandals or unsuccessful mergers.