An Ex-Wife Threatens Steve Wynn’s Casino Empire
Steve Wynn has been through alot in his life. He's had his ups - think of properties such as Golden Nugget, Mirage, Bellagio, Wynn & Encore, and resorts in Macau. He's also had his downs - he’s been kicked out of a company, through a $750 million divorce, had his daughter kidnapped, and he even put his elbow through a Picasso. But Steve Wynn has never been in a "pickle" quite like this.
Elaine Wynn has asked a federal court for permission to sell the Wynn Resorts shares she was awarded in the couple’s 2009 divorce. A sale of even half of her 9.6 percent stake could trigger a series of events that would threaten her ex-husband’s sway over the $13 billion gaming company, his lavish, company-financed lifestyle—and possibly his personal fortune. “She’s the swing shareholder,” says William Thompson, a professor emeritus at the University of Nevada, who studies the gambling industry. “This could be the final damper on the guy.”
Shareholders have a lot riding on the suit: They’ve enjoyed an eightfold gain since 2009 under Wynn’s leadership. The company, whose flagship casino is the most profitable on the Las Vegas Strip, has said it would face a serious business risk if Wynn, 71, left or even got distracted. “If we lose the services of Mr. Wynn, or if he is unable to devote sufficient attention to our operations for any other reason, our business may be significantly impaired,” the latest annual report said.
And it seems that other properties and projects would also suffer - in New England, consider the Massachusetts entry in Everett.
Wynn is effectively the company’s largest shareholder because he owns 9.9 percent of the stock and controls his ex-wife’s shares. If Elaine prevails in court, “Steve Wynn would not beneficially own or control Elaine Wynn’s shares and a change in control may result” under the terms of the company’s debt agreements, according to company filings. Once that happens, the company says it must offer to buy back $3 billion in bonds. The company, which has said it’s heavily indebted, might have to borrow more money to finance such a buyback.
With so many other irons in the fire, would Steve Wynn have the attention it would take to "woo" the Everett community? I guess, we'll see...
That's all for now.
Binbin
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