Wynn reverses himself; New name, plans for F-blew

Wynn Resorts took a step closer to being taken over or sold off in pieces last weekend. Ex-CEO Steve Wynn submitted a letter saying that the now-famous 2010 stockholders’ agreement which binds Elaine Wynn’s shares with his was “invalid and unenforceable as a matter of law.” According to Deutsche Bank analyst Carlo Santarelli, “Right now, the announcement means nothing. The ball is now in Ms. Wynn’s court as it is up to her to decide if she would like to abolish the Agreement. While Ms. Wynn has wanted to dissolve of the agreement for some time, it is possible that she changes her position with the Court, in which case, the two parties would essentially swap sides of the same argument. If she maintains her existing position, the Court is likely to dismiss the issue and the Stockholders Agreement would then be terminated.” He added that Mr. Wynn has made it clear he has no intention of selling down his position in the company. However, decoupling the voting rights of Elaine Wynn‘s shares from him his own would probably make it harder for him to thwart a sale of the company that he built. (And the wolves are on the prowl.)

Adds Santarelli, “Ms. Wynn has to agree to the proposal, and while likely, we don’t believe it to be a foregone conclusion, as some may consider it to be. We also don’t believe Mr. Wynn is a voluntary seller at this stage. Additionally, the gesture by Mr. Wynn could create some constructive discussion and potentially alleviate future headlines as the trial gets underway, with summary judgment hearings beginning next week.”

* New Fontainebleau owner Steven Witkoff has been quiet about his plans for the behemoth but he’s not been inactive. Just minutes ago, he announced that he was teaming with JW Marriott to create The Drew Las Vegas. “Anticipated to open in late 2020, the resort will feature nearly 4,000 rooms and suites as well as over 500,000 square feet of convention and meeting space,” read the press release, which emphasized the hotel angle. It will bring Marriott to the Strip for the first time and will also mark the Vegas debut of the company’s Edition brand. There was almost no mention of gambling in the press release, although it ominously announced that John Unwin (left) — who struggled so badly at The Cosmopolitan at Las Vegas — would “will oversee the launch and operations of The Drew Las Vegas.”

In its favor, The Drew will have proximity to the expanded Las Vegas Convention Center. It also will plug a big gap between the former Riviera site and Resorts World Las Vegas. Wrote Deutsche Bank’s Santarelli, “We believe considerable doubt lingered in the investment community regarding the completion of this development and as such, we think the firming of plans and anticipated opening date will serve as a surprise to some. We also believe the late 2020 target date will be ahead of most expectations, including our own.” Who knows? Witkoff might even beat Genting Group to market with The Drew.