James Packer In Trouble After $10 Billion Casino Takeover Deal Falls Through
Las Vegas casino giant, Wynn Resorts, pulled out of negotiations with the James Packer-owned Crown development in Barangaroo.
Wynn ended takeover deals overnight, citing premature disclosure of the negotiations in a statement.
Wynn Resorts asserted that they have "terminated all discussions with Crown Resorts concerning any transaction".
The $10 billion deal would have secured Wynn two Crown resorts in Australia as well as the Barangaroo Crown development, due to open in 2021.
Crown stated earlier this week that the talks were in the preliminary stages and the companies had not agreed on a value or deal structure, adding that the proposal had not yet gone to the board.
Wynn had offered to acquire Crown at $14.75 per share and Packer owns 47 percent of Crown.
Following the termination of the talks, Wynn's shares were down 3.5 percent and Crown Resorts shares closed nearly 20 percent higher -- but still below the proposed buyout price at $14.05.
The deal would have secured Wynn a diverse global portfolio if its licenses in Macau are not renewed.
The dissolving of negotiations represents a severe hit for Packer, who would have ended his career with a $4.7 billion payout and 9.8 percent of Wynn's shares.