Fertitta Unlikely to Pursue Wynn Takeover, Says Analyst-Industry-iSLOT-Free Slot Machine Guide

Fertitta Unlikely to Pursue Wynn Takeover, Says Analyst

2024-12-02

Tilman Fertitta increased his stake in Wynn Resorts (NASDAQ: WYNN) to nearly 10% of the shares outstanding, but one analyst believes the Golden Nugget chief executive officer is unlikely to purse an acquisition of his rival.

Fertitta Wynn — Billionaire businessman Tilman Fertitta. He’s unlikely to pursue an outright acquisition of Wynn Resorts. (Image: *Bloomberg*)

In a new report to clients, CBRE John DeCree said Fertitta is likely to remain a passive investor in Wynn despite increasing his position in the casino giant to 9.9% during the third quarter, up from the 6.1% he controlled following his initial investment in the gaming company two years ago. News of that boosted investment sent Wynn shares higher by 8.65% on Thursday with some of that jump attributable to Fertitta’s acquisitive history.

We can appreciate the speculation, particularly given Fertitta’s mergers and acquisitions track record, including the acquisition of Morton’s Restaurant Group and McCormick & Schmick’s, both of which started with 13G filings and culminated in full takeovers,” wrote DeCree.

It was a 13G filing that revealed Fertitta’s increased position in Wynn. Had it been a 13D, that would have signaled he planned to be an activist shareholder, pushing for some form of change at Wynn, including a potential sale.

Fertitta Takeover Speculation Plausible, But…

Combining Fertitta’s history of acquisitions with his Wynn investment now close to 10%, it’s easy to understand why the takeover talk restarted.

Ten percent is a level at which any company would need to listen to the investor holding that position. However, listening and appeasement are often two different things. Plus, there are myriad examples of investors acquiring sizable stakes in corporations and remaining passive. Warren Buffett’s Berkshire Hathaway is one of the prime examples of that.