LAS VEGAS, Sept. 17, 2012 /PRNewswire/ -- Aruze USA, Inc., the largest stockholder of Wynn Resorts, Limited ("Wynn Resorts" or the "Company") (NASDAQ: WYNN) with current ownership of approximately 19.6% of the outstanding shares, today announced that it has issued an open letter to the Company's stockholders and has nominated two highly qualified candidates for election to the Wynn Resorts board of directors at the Company's 2012 annual meeting scheduled for November 2, 2012.
The full text of the letter to the Company's stockholders follows:
September 17, 2012
To Our Fellow Wynn Resorts, Limited Stockholders:Mr. Kazuo Okada, a founder and member of the board of directors (the " Board") of Wynn Resorts, Limited (" Wynn Resorts" or the " Company"), Universal Entertainment Corporation (" Universal") and its subsidiary, Aruze USA, Inc. (" Aruze" and, together with Mr. Okada and Universal, the " Universal Group" or " we"), are the beneficial owners of 24,549,222 shares of common stock, $.01 par value (the " Common Stock") of Wynn Resorts, representing approximately 19.6% of the outstanding shares of Common Stock. In the last year, the value of Wynn Resorts Common Stock has plummeted by almost 30%. We believe that current and potential investors in the Company have lost confidence in the Company's management and the Board. We further believe that this loss of confidence has resulted from a history of poor corporate governance and questionable actions under the direction of Stephen Wynn, chairman of the Board and chief executive officer of the Company, much of it driven by Mr. Wynn's personal financial and control goals. Recently, the Company has come under scrutiny for a questionable donation it made to a public university in Macau at a time when the Company was seeking local government approval to open a casino. That donation is currently under investigation by federal and state authorities and has resulted in multiple lawsuits against the Company. Accordingly, we are announcing that, as a step toward restoring investor confidence, we have nominated two highly qualified independent nominees for election to the Board at the Company's 2012 annual meeting of stockholders scheduled for November 2, 2012. Suspicious $135 million donation to the University of Macau Development Foundation In April 2011, the Board met, discussed, and approved a pledge by Wynn Macau, Limited (" Wynn Macau"), a subsidiary of the Company, to donate HK$1 billion (roughly $135 million) to the University of Macau Development Foundation, at a time when Wynn Macau was seeking local government approval to develop a third casino. This donation is suspicious for a number of reasons, including its enormous size, the fact that the 10-year term of the pledge matches precisely the length of the casino license Wynn Resorts was seeking, and the fact that the lead trustee of the University of Macau Development Foundation also has a position in the Macau government which enables him to influence the issuance of gaming licenses. Mr. Okada questioned and objected to the donation and was ultimately the sole director to vote against it. Mr. Okada has noted that "I am at a complete loss as to the business justification for the donation, other than that it was an attempt to curry favor with those that have ultimate authority for issuing gaming licenses."
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts