Okada Vows to Fight Wynn Resorts' Move

NEW YORK (TheStreet) -- Wynn Resorts (WYNN) - Get Report shareholder Kazuo Okada will fight the casino company's decision to forcibly buy out his stake in the company.

Okada will "take all legal actions necessary to protect its investment and prevent" Wynn from cutting ties with him, said a statement from Okada's

Universal Entertainment Corp.

, the

Associated Press

reported.

Okada is Wynn's biggest shareholder. On Sunday, Wynn Resorts said an investigation found that he

had made improper payments to foreign gaming regulators

.

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Wynn Resorts said its board had voted to ask for Okada's resignation as a director and decided to forcibly buy back the 24 million shares of Wynn Resorts that he owns through his company

Aruze USA

.

Based on Friday's closing level of $112.69, those shares have a market value of $2.7 billion. (U.S. markets were closed Monday in observance of Presidents Day.)

But Wynn Resorts is compensating Okada with significantly less. The company said it will pay him $1.9 billion in 10 years because of his behavior. Wynn Resorts said its articles of incorporation allow such a payment.

The statement from Universal Entertainment said Wynn's move was "outrageous" and called for more oversight of the casino company's board, the

AP

reported.

This article was written by a staff member of TheStreet.