UPDATE: Wynn Resorts Retracts Filing On Cotai Land Concession
March 02 2012 - 4:33PM
Dow Jones News
Wynn Resorts Ltd. (WYNN) retracted a regulatory disclosure about
a land concession deal in Macau, saying the filing was made in
error.
The casino operator's shares rose 6% on nearly twice the average
daily volume early Friday on an 8K filing that indicated a deal was
in the works to build a new casino on the Cotai strip in Macau.
Trading on the company's stock was even halted pending an
announcement.
"A Current Report regarding the gazetting of the Cotai Land
Concession Contract...was filed by mistake by the Company's agent,"
Wynn's filing said, referring to a listing that would confirm final
approval of the contract.
Taking responsibility for the mishap was law firm Skadden, Arps,
Slate, Meagher & Flom LLP, which released a statement late
Friday blaming a clerk for "inadvertently" sending the 8K. "We have
taken steps to rectify the situation as quickly as possible and are
reviewing what occurred to ensure that it cannot happen in the
future," Skadden said the release.
While some of the steam has deflated from the company's stock,
it has closed sharply higher as investors suspect something is
still afoot despite the retraction.
The company's shares rose 4% to $127.27 in trading Friday. Wynn
and rivals have been angling to build casinos in Macau's Cotai area
for some time with government approvals initially expected by 2010.
Cotai is considered the next critical expansion area for Macau
casino operators, which are highly dependent on the former
Portuguese colony for revenue. Wynn currently has two casinos in
Macau.
"In our view, this erroneous filing might be interpreted by more
bullish investors that an official approval...of Wynn's Cotai
project is or could be imminent," said Cameron McKnight, an analyst
at Wells Fargo. "Balancing this view is the potential that this
error could delay the process further."
He noted that draft of the land concession contract published in
the filing made no reference to the number of gaming tables at the
property but did note Wynn's resorts will contain a gaming area and
the operation of "games of fortune or other games."
-By A.D. Pruitt, Dow Jones Newswires; 212-416-2197;
angela.pruitt@dowjones.com
--Kathryn O'Keeffe contributed to this article.
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