Only four years ago Steve Wynn was saying that Japanese billionaire Kuzuo Okada was “my partner and my friend…” and there was “hardly anything that I won’t do for him.”Now it appears there also isn’t anything he wouldn’t do to Okada.
The duo, co-founders of the multibillion dollar Wynn Resorts Ltd. started this feud over territory. Okada wanted to build a resort in the Philippines with his own company, Universal Entertainment Corp., and Wynn saw that as competition. Okada, also, says Reuters, accused Wynn of bribing the government of Macao by giving a hefty donation to Macao University.
Last weekend, the Wall Street Journal reports, the fighting came to a head in Las Vegas. Wynn accused Okada of bribing gambling regulators in the Philippines. The board of Wynn Resorts had conducted an internal investigation of the matter (conducted by a former FBI agent, no less) and found Okada “unsuitable”. They forcibly bought him out right there.
Or tried to. According to sources close to the matter, Okada is still looking to file a restraining order against Wynn Resorts and the board to stop the share redemption and declare it invalid. In a statement from his company, he said that it was “more evident than ever that additional independent oversight is needed on the Wynn Resorts Board.”
You can imagine why he would be so mad, check out the terms of the share redemption below (from WSJ):
After deciding Mr. Okada was “unsuitable,” Wynn Resorts bought out his $2.77 billion stake in Wynn, in exchange for a promise to pay Mr. Okada $1.9 billion in 10 years. The payment is a 30% discount to the market value of his stake, not including the cost of the 10-year waiting period. The promissory note pays 2% annual interest.
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