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Wynn, the world's second-largest casino operator, walked away
from the deal after details of the offer, which had sent Crown
shares soaring more than 20 percent, became public through a
leak to an Australian newspaper.
The indicative offer for Australia's biggest casino operator had
been viewed by investors as opportunistic but also only the
beginning of a drawn-out pursuit. That is a lot less likely now.
"Wynn's actions are more likely to reflect a genuine frustration
with a breach of the confidential nature of the discussions than
an attempt to add pressure to the negotiation," said Angus
Gluskie, managing director of White Funds Management, which
holds Crown shares.
Crown stock dropped 10 percent at the open, then pared some
losses to trade 8.5 percent under Tuesday's closing price, while
the broader market fell 0.1 percent.
At A$12.86, the stock remained almost 10 percent higher than its
last price before Wynn's approach was disclosed, suggesting hope
for a deal had not completely evaporated.
"I reckon they will be back, but will play cold hand for a
while," said James McGlew, executive director of corporate
stockbroking at Perth's Argonaut Ltd and another Crown
shareholder.
News of Wynn's interest was first broken by Australian Financial
Review on Tuesday and confirmed by Crown, which also disclosed
Wynn's offer price.
Wynn then issued two statements, first confirming the talks,
and, a few hours later, stating that they had ended. Crown said
in a statement it noted Wynn's decision. Wynn shares fell almost
4 percent in New York on Tuesday.
The deal was to offer Wynn a hedge against Macau, the Chinese
gambling hub where its license are up for renewal, by giving it
two lavishly revamped Australian casinos and a third still being
built on the prized Sydney harbor front.
The offer came as Crown is grappling with the effects of an
economic slowdown in China, which has crimped revenue from
high-rolling Chinese gamblers at its Australian tables.
(Reporting by Tom Westbrook and Paulina Duran; Editing by
Michael Perry and Stephen Coates)
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