Spat Between Largest Wynn (WYNN) Shareholders Continues, May Impact Stock
Wynn Resorts (Nasdaq: WYNN) is ticking lower Friday amid reports that a rivalry atop the company might go on for another two weeks.
According to Reuters, Japanese businessman Kazuo Okada is inching closer to gaining access to the books of Wynn Resorts. Recently, Okada sued Steve Wynn over being denied access to the information and called a recent $135 million corporate donation to a university in Macau 'inappropriate."
Okada holds a 20 percent stake in Wynn, double what Steve Wynn is holding.
Wynn and Okada have been business partners for 12 years now, but this recent escapade has caused a rift between the two billionaires.
On Thursday, a judge in Nevada ruled that he will need an additional two weeks to review claims and give the two more time to resolve some issues.
Chairman of arcade-game manufacturer Universal Entertainment Corp. -- who is 11 percent owned by Goldman Sachs (NYSE: GS) -- Okada has also sought to nominate four members to Wynn Resorts' Board of Directors, potentially giving him control of five out of 12 seats.
Universal is looking to develop a $2 billion casino in the Philippines, which Wynn claims is the heart of all the problems, though people for Okada said the Philippines project wasn't a factor.
It's not clear why Okada wants to take a peek into the books, whether it be to see a more itemized view of spending or to get a clearer picture of Wynn's overall operations (10-Qs and 10-Ks are very general), but the outcome may have a negative effect on Wynn's shares as investors may lose confidence in the casino giant.
Shares of Wynn Resorts are about 1 percent lower Friday morning. Shares are well off their 52-week high just above $170, and are trading 6 percent lower following its fourth-quarter numbers issued February 2nd.
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According to Reuters, Japanese businessman Kazuo Okada is inching closer to gaining access to the books of Wynn Resorts. Recently, Okada sued Steve Wynn over being denied access to the information and called a recent $135 million corporate donation to a university in Macau 'inappropriate."
Okada holds a 20 percent stake in Wynn, double what Steve Wynn is holding.
Wynn and Okada have been business partners for 12 years now, but this recent escapade has caused a rift between the two billionaires.
On Thursday, a judge in Nevada ruled that he will need an additional two weeks to review claims and give the two more time to resolve some issues.
Chairman of arcade-game manufacturer Universal Entertainment Corp. -- who is 11 percent owned by Goldman Sachs (NYSE: GS) -- Okada has also sought to nominate four members to Wynn Resorts' Board of Directors, potentially giving him control of five out of 12 seats.
Universal is looking to develop a $2 billion casino in the Philippines, which Wynn claims is the heart of all the problems, though people for Okada said the Philippines project wasn't a factor.
It's not clear why Okada wants to take a peek into the books, whether it be to see a more itemized view of spending or to get a clearer picture of Wynn's overall operations (10-Qs and 10-Ks are very general), but the outcome may have a negative effect on Wynn's shares as investors may lose confidence in the casino giant.
Shares of Wynn Resorts are about 1 percent lower Friday morning. Shares are well off their 52-week high just above $170, and are trading 6 percent lower following its fourth-quarter numbers issued February 2nd.
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