Los Angeles - Casino operator Wynn Resorts Ltd said on Monday it has commenced a public offering of 7 million shares of its common stock. Wynn said it intends to use the proceeds for general corporate purposes, including repayment of debt. The company, based in Las Vegas, said it would grant to Deutsche Bank Securities Inc and Merrill Lynch & Co an option to purchase up to an additional 1.05 million shares.
Los Angeles (Reuters) - Casino operator Wynn Resorts Inc said on Tuesday it would cut the wages of its salaried workers in Las Vegas and reduce work weeks for its full-time hourly employees to avoid cutting jobs. "In effect, everybody makes a little bit less money, but everyone keeps their job," Chairman and Chief Executive Steven Wynn said on a conference call with analysts and investors. "We don't want anybody on unemployment here."
Wynn Resorts CEO Steve Wynn affirmed during a visit with his top management team in Macau that no cost control plans would be implemented in any of his casinos across Las Vegas and Macau. Wynn said there would be "no salary cuts and reduction in the numbers of construction workers and company staff". The company's CEO also assured that the construction project of Encore Macau situated right next to Wynn Macau would not be suspended amid the global financial crisis that had hit the US severely.
(Reuters) - Citigroup initiated coverage of Wynn Resorts Ltd with a "sell" rating and a price target of USD 29, and said it does not see any catalysts for the stock until the second half of 2009. "Although we believe Wynn is the best positioned U.S. (casino) operator in Macau, the opening of Encore in Las Vegas, visa issues and commission caps in Macau leave many landmines in the road ahead," analyst Anil Daswani said in a note to clients.
Hong Kong - Casino magnate Steve Wynn's flagship Wynn Resorts is reportedly planning a secondary listing in Hong Kong, aiming to raise USD 3 billion to finance the construction of a mega-resort complex in Macau. The share offering, however, is under a cloud amid negative market sentiment. Wynn Resorts has appointed UBS, Deutsche Bank and Morgan Stanley to arrange the Hong Kong listing, which is likely to be the largest initial public offering in the city this year if it proceeds.
