Crown Resorts Limited [ASX:CWN] provides gaming and entertainment in Melbourne and Perth.
Crown Melbourne is an integrated resort, which boasts a casino, hotels, function rooms, restaurants, shopping and entertainment facilities.
Crown Perth is also an integrated resort, which consists of a casino, hotels, a convention centre, and several food and beverage outlets.
What was the news behind the share price move?
CWN paused trading in its shares pending an announcement this morning.
Crown said it was in talks with Las Vegas casino company Wynn Resorts about its potential US$7.1 billion buyout of the company. Shares rocketed 20% after the news broke and the stock resumed trading.
The current proposal has an implied value of $14.75 per share. Wynn Resorts intends to pay Crown half in cash and half in Wynn Resorts shares.
What’s next for the CWN share price?
Crown has noted that any talks between Crown and Wynn are only in a preliminary stage. No agreement has been reached between the parties in relation to the structure, value or terms of the transaction.
It is reasonable to assume that shares will remain around this price until a settlement has been reached. If a deal is not reached, it would not be unusual for the share price to fall on the negative news.
This is not an endorsement to buy and sell the stock. It is an update only.
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