Steve Wynn surrenders control over ex-wife Elaine’s shares

People pass by Wynn Las Vegas on the Vegas Strip

Steve Wynn agreed to give up control over his ex-wife’s shares of Wynn Resorts Ltd., potentially ending their six-year legal battle days after he resigned from the casino company following accusations of sexual harassment.

If a judge approves, Steve Wynn’s voting power will shrink to 11.8 percent of the shares, with Elaine Wynn able to determine what to do with her 9.4 percent stake. That may leave Wynn Resorts more vulnerable to activists or potential acquirers.

The company said in a filing Friday that Steve Wynn has no immediate plans to sell his shares and would only do so in an orderly fashion in any case. At one point Wynn, 76, had corralled more than a third of the voting rights at the company, making an unfriendly takeover virtually impossible.

Elaine Wynn previously said she wanted the ability to sell her shares so she could focus on philanthropy. Her spokeswoman declined to comment Friday.

The heart of the fight was an agreement between Steve Wynn, Elaine Wynn and Japanese businessman Kazuo Okada, a Wynn Resorts co-founder, that gave Steve control over the group’s shares. Steve Wynn had lost his previous casino company, Mirage Resorts, in a takeover by MGM Resorts International and sought to lock up as much stock in his new company as possible.

The relationship between the three began to crumble in 2012, when Wynn Resorts sued Okada and unilaterally bought back his shares after accusing the businessman of trying to bribe foreign casino officials. Okada tried to regain his stake and Elaine Wynn said she should no longer be bound by the agreement.

The Okada suit is expected to go to trial in April.

Wynn, chairman and chief executive officer, resigned last week from Wynn Resorts in the wake of a Jan. 26 Wall Street Journal expose detailing sexual harassment allegations going back decades. Wynn Resorts said Friday an outside counsel was no longer investigating the claims, though a board committee will continue working to ensure “the company employs best in class workplace practices.” Christopher Palmeri, Bloomberg