NY hedge fund buys 5% stake in Wynn Resorts

Melvin Capital hedge fund based in New York has bought 5.13% stake in Wynn Resorts.

The company stated in a filing with the Securities and Exchange Commission that it has raised its shares in Wayne Resorts from the previous 0.5%. Melvin Capital now has more than 5.77 million shares of Wynn Resorts.

“The securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities,” the filing stated.

Wynn shares closed at $148.34 on the Nasdaq Friday, down 19 cents or 0.13 per cent. The SEC filing was made public Friday morning.

The company, which operates casinos in Las Vegas and Macau and is building a $2.4 billion resort complex near Boston, has been in constant upheaval since February, when company founder Steve Wynn stepped down as chairman and CEO following a report of sexual harassment allegations by the Wall Street Journal.

He sold his entire 12 per cent stake in March for $2.1 billion. Hong Kong-based casino operator Galaxy Entertainment bought a 4.9 per cent stake in Wynn in March.

Since that time, the Wynn Resorts board of directors has been remade, with more than half the board joining this year.

Elaine Wynn – the company’s largest shareholder – signed a “Standstill Period” that ends in 2020 and agreed to cap her ownership stake at her current 9.9 per cent.

Gaming industry veteran Phil Satre was named vice chairman of the company in early August and is expected to be named chairman by the end of the year. Current board chairman D. Boone Wayson will step down as chairman but will remain as a board member.

In April, the company added three women to its board – former White House press secretary Dee Dee Myers, three-time CEO Betsy Atkins, and Kestrel Advisors CEO Winifred “Wendy” Webb – who joined current board member Pat Mulroy making Wynn among the top 40 S&P 500 companies for female board representation.

Wynn CEO Matt Maddox was also named to the board this month.

Source: cdcgamingreports.com