{"id":1372,"date":"2024-11-16T21:54:48","date_gmt":"2024-11-16T22:54:48","guid":{"rendered":"https:\/\/extraniceshirts.org\/?p=1372"},"modified":"2024-12-23T13:03:33","modified_gmt":"2024-12-23T13:03:33","slug":"fertitta-unlikely-to-pursue-wynn-takeover-says-analyst","status":"publish","type":"post","link":"https:\/\/extraniceshirts.org\/index.php\/2024\/11\/16\/fertitta-unlikely-to-pursue-wynn-takeover-says-analyst\/","title":{"rendered":"Fertitta Unlikely to Pursue Wynn Takeover, Says Analyst"},"content":{"rendered":"

Tilman Fertitta increased his stake in Wynn Resorts (NASDAQ: WYNN) to nearly 10% of the shares outstanding, but one analyst believes the Golden Nugget chief executive officer is unlikely to purse an acquisition of his rival.<\/p>\n

\"Fertitta
Billionaire businessman Tilman Fertitta. He’s unlikely to pursue an outright acquisition of Wynn Resorts. (Image: Bloomberg<\/em>)<\/figcaption><\/figure>\n

In a new report to clients, CBRE John DeCree said Fertitta is likely to remain a passive investor in Wynn despite increasing his position in the casino giant to 9.9% during the third quarter<\/a>, up from the 6.1% he controlled following his initial investment in the gaming company two years ago. News of that boosted investment sent Wynn shares higher by 8.65% on Thursday with some of that jump attributable to Fertitta\u2019s acquisitive history.<\/p>\n

\n

We can appreciate the speculation, particularly given Fertitta\u2019s mergers and acquisitions track record, including the acquisition of Morton\u2019s Restaurant Group and McCormick & Schmick\u2019s, both of which started with 13G filings and culminated in full takeovers,\u201d wrote DeCree.<\/p>\n<\/blockquote>\n

It was a 13G filing that revealed Fertitta\u2019s increased position in Wynn. Had it been a 13D, that would have signaled he planned to be an activist shareholder, pushing for some form of change at Wynn, including a potential sale.<\/strong><\/p>\n

Fertitta Takeover Speculation Plausible, But…<\/h2>\n

Combining Fertitta\u2019s history of acquisitions with his Wynn investment now close to 10%, it\u2019s easy to understand why the takeover talk restarted.<\/p>\n

\n

Ten percent is a level at which any company would need to listen to the investor holding that position. However, listening and appeasement are often two different things. Plus, there are myriad examples of investors acquiring sizable stakes<\/a> in corporations and remaining passive. Warren Buffett\u2019s Berkshire Hathaway is one of the prime examples of that.<\/p>\n<\/div>\n

For his part, Fertitta has made a decent amount of money on his original Wynn stake. DeCree said the stoke is up 70% since that position was revealed. It\u2019s possible the Houston Rockets owner doesn\u2019t want to mess with a good thing by turning activist, but he does see more upside potential in the shares.<\/p>\n

\u201cWe view his recent move similarly, as an attractive value investment that could become strategic if a unique situation arises, such as an unfavorable economic cycle that results in further dislocation in the shares,\u201d added the CBRE analyst.<\/p>\n

Complexities Abound with Wynn Takeover<\/h2>\n

While Wynn could be an attractive takeover target for Fertitta or other suitors, there are complexities that need to be considered. Those include maintaining gaming licenses in Macau and the planned casino hotel project in the United Arab Emirates<\/a> (UAE).<\/p>\n

Those are moving parts not germane to some Wynn competitors and could signal that if Fertitta wants to push for change at the Encore operator, it could be in more strategic fashion rather than an outright acquisition<\/strong>.<\/p>\n

Last week, speculation surfaced that Fertitta believes Wynn management isn\u2019t doing a good job of conveying the stock\u2019s performance — it\u2019s topped peers for over a year — to shareholders and that the operator should considering expanding its venerable brand in the US. Currently , the operator\u2019s US exposure consists of the Wynn\/Encore complex on the Las Vegas Strip and Encore Boston Harbor, though the company is bidding for a New York City gaming permit<\/a>.<\/p>\n

The post Fertitta Unlikely to Pursue Wynn Takeover, Says Analyst<\/a> appeared first on Casino.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Tilman Fertitta increased his stake in Wynn Resorts (NASDAQ: WYNN) to nearly 10% of the shares outstanding, but one analyst believes the Golden…<\/p>\n","protected":false},"author":1,"featured_media":1374,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[12],"tags":[],"_links":{"self":[{"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/posts\/1372"}],"collection":[{"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/comments?post=1372"}],"version-history":[{"count":2,"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/posts\/1372\/revisions"}],"predecessor-version":[{"id":1375,"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/posts\/1372\/revisions\/1375"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/media\/1374"}],"wp:attachment":[{"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/media?parent=1372"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/categories?post=1372"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/tags?post=1372"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}