Shares in Crown Resorts Limited [ASX:CWN] rose to a high of $14.37 yesterday after news broke that American hotel company Wynn Resorts was considering a potential takeover bid.
The rally was short-lived, with CWN shares opening 9% lower this morning. The sudden fall in price was attributed to Wynn Resorts’ decision to pull out of the deal.
On Tuesday morning in the US, Wynn Resorts issued a statement: ‘Following the premature disclosure of preliminary discussions, Wynn Resorts has terminated all discussions with Crown Resorts concerning any transaction.’
What’s next for the CWN share price?
Crown’s share price rose on the back of the news of a potential deal and has now fallen closer to where it was previously. However, it’s still slightly up from the price it was previous to the potential deal becoming public. Perhaps this is the market suggesting another deal could be possible.
This is not an endorsement to buy or sell the stock. It’s an update only.
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