Crown shares tumble after Wynn cancels $7.1 billion casino takeover

Crown Resorts talking about takeover offer from Vegas' Wynn

"Following the premature disclosure of preliminary discussions, Wynn Resorts has terminated all discussions with Crown Resorts concerning any transaction", Wynn said in a statement released overnight.

In a tersely worded statement, the Las Vegas casino giant said it was ending all discussions with Crown Resorts.

The proposed deal, which values Crown at A$14.75 per share, 26 percent more than Monday's closing price, will also allow Packer to divest his single largest asset, completing a remarkable corporate retreat for a titan who's been beset by political trouble and mental health issues in recent years.

Under the Wynn proposal, Mr Packer would have emerged with about $2.2 billion in cash and Wynn shares equal to nearly10 per cent of the USA group. Crown on Tuesday had described Wynn's proposal as consisting of 50 per cent cash and 50 per cent Wynn shares, describing the talks on a "potential change of control transaction" as being at a "preliminary stage".

Crown did say, before Wynn walked away, that there was no certainty of a deal.

The deal would put Wynn in charge of one of Australia's most high profile developments, a A$2.2 billion luxury casino precinct called Barangaroo on the Sydney waterfront, which Crown has pitched as its future growth engine.

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Union Gaming Group LLC analyst John DeCree said that the acquisition was likely a defensive move on Wynn's part, in order that it not become a takeover target for rivals like Las Vegas Sands or MGM Resorts International. The firm had added: "There is no assurance that these discussions will result in a transaction".

In the past couple of years, however, Crown Perth has felt the effects of weak consumer confidence and a fall in the numbers of Asian high-rollers gambling at its tables.

If the parties come to terms, Wynn would be buying a company whose ambitions are in active decline. The episode "shook me to the core", Packer said in a rare interview with the Australian newspaper in October 2017.

Crown sold its interests in joint-venture casinos in Macau soon after. The news had lifted shares of Sydney-listed Crown by almost 20 per cent on Tuesday.

Mr Packer, son of Kerry, the late billionaire mogul who started one day cricket, owns nearly half of Crown Resorts though his privately held Consolidated Press Holdings Group.

Wynn Resorts, which operates casinos in Las Vegas and Macau, has also had a rocky few months after founder Steve Wynn stepped down earlier this year as chairman and chief executive in the wake of sexual misconduct allegations. He later sold all his holdings in the company.

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