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Through The Grapevine: Has Las Vegas Sands Made A Quiet $95/Share Offer For Wynn?

We first mooted an LVS/Wynn deal last July 13 on SA.

The combined companies would become a global powerhouse.

Wynn would run his own division.

The farther backwards you look, the farther forward you see. —Winston Churchill

Fellow SA user jensan96, a savvy follower of many financial website chatter posts, recently contacted me with news he'd read on two sites: whispers about a quiet $95 per share offer by Las Vegas Sands (NYSE:LVS) for Wynn Resorts (NASDAQ:WYNN). We know from our own on the ground network in Las Vegas that such a deal has been rumored deep inside the industry. We've been following that trail since we first mooted the possibilities in our SA post last July 13th. The rumors persisted but they remain just that and we didn't believe it added anything to merely post the news that rumors were persisting.

However, we've followed up on jensan96's note on the theory that when this kind of chatter migrates to the web the where's there's smoke there's fire effect tends to heat up the conversation. We've worked the phones to our own sources in Las Vegas this week to see whether we could tease out anything more specific about an $95 a share LVS offer for Wynn. All we can responsibly report now is that the noise level has increased but no one, with friends inside the companies, or others who are either former executives in each, or long time close observers, could provide specific confirmation of the $95 offer beyond what we knew as persistent rumors.

However we do think it appropriate that since the conjecture has surfaced on line from more than one source, we should alert SA readers and restate the basics for our original case that the deal, if real, makes great sense for both companies and their shareholders.

We are working on a detailed analysis of such a possible deal we will share with subscribers to our premium SA site, The House Edge, going forward. However, we now provide some of the major short strokes theorized by jensan96 and myself in an exchange of emails since last summer.

My original thought was a merger of the two companies under the umbrella of a holding company like Loews in which both the Wynn and LVS personal stakes would be proportional. Each company would be run as a separate division and Wynn and Adelson would agree to a succession plan that met the confidence levels of both men. The values were obvious: Two seminal thinkers, two great brands, high concentration of market heft, bigger dividends for all, plenty of Capex available going forward to finance...


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