Steve Wynn has been in the media recently due to sex scandals, which have hurt Wynn Resort shares. In an announcement, Wynn stated he would not stop his ex-wife from selling her shares. In previous years he has attempted to regain control of the stock his ex-wife holds. However, with his recent troubles and stepping down from the company, Wynn has decided he is no longer going to try and get his shares back from his ex-wife.
Wynn sent a message to the Securities and Exchange Commission announcing that he is not going to contest his ex-wife’s attempt to sell the stock. Since the divorced ex-wife, Elaine wanted to sell her shares, which is only 9.4 percent of the company. However, Wynn said it was a breach of the divorce settlement for her to do so, and those shares would provide 12 percent total in ownership of the company for Wynn.
Wynn Will Keep His Shares
The announcement stated Wynn is not going to sell his stock in the company at this point. If he does choose to sell any of his shares, he will do so in a proper method.
By Elaine selling her shares, there is a possibility that another casino entity may try to take over the company. However, Jim Murren of MGM Resorts stated that it is improbable another company would attempt a takeover.
Wynn Resorts is still highly valuable, and although shares may become available, it is hard to believe another casino company would have the funding to buy out current stockholders.
There is also a Nevada court ruling that would make things difficult for Wynn Resorts to be purchased by another entity. They ruled that Kazuo Okada, a Japanese casino company, can claim their 19.66 percent shares that were redeemed in 2012, under forceful negotiations. Steve Wynn legally forced Okada to return the shares when the two had issues in 2012.
The SEC letter was sent in only a few days after Wynn resigned, which was ten days after the allegations of his harassment of several Wynn Resorts staff. Steve Wynn contends these accusations are false, but there is enough fire behind the trouble to have him stepping down from his position and to see the stock lose quite a bit of value. Part of the difficulty comes from an earlier 2005 case where he settled after allegations of sexual misconduct where filed against him.