Wynn Fight Continues, But Kazuo Okada Resigns From The Board
Feb 21st 2013 3:33PM
Updated Feb 22nd 2013 6:10AM
Wynn Resorts Ltd. (NASDAQ: WYNN) is perhaps one of the craziest infighting scenarios that investors have seen in modern times. The fight for control and influence has been very odd and has actually been very under-reported when you consider that Wynn Resorts is one of the top casino resort destinations in the world.
A news release on Business Wire was issued by Kazuo Okada today saying that he remains determined to fight Steve Wynn's involuntary redemption of his nearly 20% stake in Wynn Resorts at what is called a 30% discount. If this sort of fight was taking place anywhere else it might be covered significantly more in the media. With Okada's resignation from the board of directors this is sure to be one of the more strange fights among corporate insiders that we have seen.
Mr. Okada said at one point in his release,
"Mr. Wynn continues to engineer a scenario where there is no longer any reason for me to continue to serve on a Board of Directors that, at his direction and insistence, undermines me at every turn, seems to act on Mr. Wynn's every whim, and impedes my ability to serve as an independent voice for Wynn Resorts shareholders. I have also heard that there have been incredible cover ups by Mr. Wynn where he, in conspiracy with former employees, manipulated the media and made requests for cooperation in the Philippines."
Here is the full press release.
Wynn Resorts is down less than 1% today at $115.67 against a 52-week range of $90.11 to $138.28 and its market cap is more than $11.5 billion. A stake of 20% here is substantial. Sometimes news is so strange that it almost sounds made up, but this is the sort of news that is too strange to make up.
Filed under: 24/7 Wall St. Wire, Casinos, Corporate Governance, Law Tagged: WYNN