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Viva La Revolution Okada!

By Chuckmonster on Wednesday, 18th January 2012 3:18pm
  » filed under Las Vegas  comments: 11

   

Fun times in the Wynn Resorts boardroom over the last few weeks as majority stockholder Kazuo Okada (for whom the restaurant is named) is waging an internal war to either wrestle control of the company away from Steve Wynn or at the very least give him a thorough public spanking in the financial press.

The tiff originates from a $150m donation Wynn Resorts made to the University of Macau, a token of good will in advance of neighboring Wynn Cotai's construction and opening. Miffed by the gigantic donation, Okada requested to inspect Wynn's books and receive a full accounting of where his initial seed investments into the company have gone. Wynn Resorts PR responded with a press release that amounted to little more than a public "F.U." directed towards Okada.

Today, Okada announced that he has submitted candidates to replace three of the twelve current board members whose terms are up this year. Board members include Linda Chen (head honcho of Wynn Macau LTD) John A. Moran (retired chairman of Dyson-Kissner-Moran) and Marc Shorr (long time Wynn skull crusher.) Should Elaine Wynn choose to recuse herself from re-election, Okada would have a fourth seat to target in his takeover.

Could this be the beginning of yet another end for Steve Wynn? Stay tuned.



Tagged: steve wynn   kazuo okada   wynn revolution   





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Comments & Discussion:

could this be the reason that wynn has not yet announced their earnings?

damn, how many hookers can you disappear for $150,000,000?

I think you're misreading the 13-D. Okado isn't gunning for control - he is exercising his right under the 2010 stockholder's agreement to name a minority of the board. If he went for a majority he would have no chance given SW's stake and the technical issues around proxy fights (this is what I do for a living but I won't bore you to death). Bottom line is, The Steve isn't going to be sitting on top of a hotel named Okado anytime soon...

Ok all......what willOkada be renamed as.......?

I vote for Hibachi Cafe! (sister to TowerSuite Cafe)

Wynn has shareholder agreements with his ex-wife Elaine and Okada that give him 40% control of the company. The other board members that he is trying to knock off probably control some voting shares as well, so this play is a long shot.

Isnt the breakdown?

Steve Wynn 10%
Elaine Wynn 10%
Okada 20%

@Apollo yes, it is. However, Steve has a shareholder agreement with Okada and Elaine that gives him sole control of their voting rights (meaning Steve votes for 40% of the shareholders) in matters before the Board of Directors.

This forces Steve to vote two potential successors (Schorr and Chen) off the board and replace them with "independent" members who are likely to side with Okada. It won't give Okada control of anything, but it will embarrass Steve and make board meetings a complete mess. If Okada can join with other existing board members, they can likely block any votes that require a supermajority (e.g. changes to corporate bylaws).

Its a shame that Steve cant buy more shares. If he had 51% of shares then he wouldnt have to deal with this stuff.

"Token of good will" of course = bribety bribety bribe.

How is Wynn going to blame this one on Obama?



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