Wynn Resorts has abruptly ended talks over its $10 billion takeover proposal for Crown Resorts, but some believe the Australian casino operator could still be on the market.
The Las Vegas gambling giant pulled the plug on its cash-and-scrip proposal less than a day after the deal became public, prompting Crown shares to give up almost half the 20 per cent they gained on news of the initial talks.
"Following the premature disclosure of preliminary discussions, Wynn Resorts has terminated all discussions with Crown Resorts concerning any transaction," Wynn said in a statement.
Crown confirmed Wynn's withdrawal on Wednesday and its shares dropped accordingly, but the James Packer-controlled casino operator was still worth $724 million more than before news of the Wynn approach became public.
That suggests some investors believe another proposal could eventuate.
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Former foreign secretary Julie Bishop, a friend of Mr Packer, is among those who expect a deal to be done at some point.
"Knowing Jamie, he will turn this around and he will no doubt negotiate another deal at another time and that will be in the best interests of the shareholders," Ms Bishop told reporters at Witchery's White Shirt Campaign launch in Sydney.
"He's been very successful in business and is very well known, has a very high profile, so I can understand why he may want to spend time away from business - but that's a matter for Jamie and I'm sure he will be a success in whatever he does."
The Wynn 50-50 cash-and-stock proposal had an implied value of $14.75 per share, representing a 25.6 per cent premium to the stock's $11.74 price before Crown revealed it.
Crown shares jumped to $14.05 but, by 1400 AEST on Wednesday, had slipped back 8.9 per cent to $12.80.
Crown, majority owned by Mr Packer's Consolidated Press Holdings, has operations in Melbourne, Perth, and London, and has a luxury resort development in Sydney's Barangaroo due to be completed in 2021.
Any deal by an overseas operator would require approval by the Foreign Investment Review Board.
""If there was an application it would go before the FIRB and, in time, before the Treasurer," Treasurer Josh Frydenberg said in Sydney on Wednesday.
"We strongly support foreign investment in Australia but it needs to pass the national interest test."
