Elaine Wynn in a battle with Wynn Resorts Las Vegas
28 March 2015
Wynn Resorts, Limited accused and expelled board member, Elaine Wynn for several irreconcilable situations, incorporating her participation in company discussions over possibly purchasing the vacant New Frontier site, which was accordingly procured by a group that incorporated her nephew.
The casino administrator sent a letter to shareholders recently, requesting that they support the organization’s two board candidates and overlook Elaine Wynn, organization Chairman and CEO Steve Wynn’s ex, who propelled an intermediary battle to recover her seat.
One property the company took a look at was the 35 acre land, New Frontier site, close to Wynn Resorts over from Wynn Las Vegas. The site was in foreclosure and had been vacant since 2007. It was bought in August by a company that included Australian billionaire James Packer, investment company Oak Tree Capital Management and previous Wynn Las Vegas President Andrew Pascal, who is Elaine Wynn’s nephew.
At no time did Ms Wynn recuse herself from the board discussions or inform the board that her nephew was involved in a competing bid, Wynn Resorts stated. Ultimately, the land that Wynn Resorts wanted was purchased by a company that included Ms Wynn’s nephew.
In October 2011, Steve Wynn talked about the New Frontier site amid the company’s third-quarter conference call. The Elad Group of Israel purchased the site in 2007 for $1.24 billion dollars and wanted to manufacture a $5 billion dollars adaptation of New York’s Plaza Hotel. Steve Wynn said the Elad Group had approached him on a monthly basis to build something on the site that could be connected to Wynn Las Vegas and Encore. However, he declined the offer because he couldn’t determine the project’s return on investment.
In a 2012 lawsuit that remains pending, Elaine Wynn challenged a long-standing shareholder agreement with Steve Wynn, which gives him control over her 9.5 million shares in the company. In the slide presentation, Wynn Resorts said Wynn sought an amendment to her stockholder agreement to increase the amount of stock that she is permitted to sell. The move came when the board was restructuring Steve Wynn’s compensation by providing for performance-contingent equity awards.
Wynn Resorts accused blamed Wynn for selling $10 million dollars in value of company stock through her private establishment amid a blackout period prior to the company declared income. The company said, Wynn took the position that her individual establishment is not subject to the company’s insider trading policy. In a 2012 lawsuit that remains pending, Elaine Wynn challenged a long-standing shareholder agreement with Steve Wynn, which gives him control over her 9.5 million shares in the company
If Elaine Wynn gains control of her more than 9.4 percent stake, she would be company’s third-largest stockholder. Steve Wynn would own 9.9 percent, or 10 million shares.