Australian casino operator Crown Resorts has confirmed it is in confidential discussions with Wynn Resorts regarding a potential takeover.
Crown has received a takeover offer from the Las Vegas-based firm, with Wynn Resorts proposing a combination of cash and shares, valuing Crown shares at A$14.75 each.
Crown says the terms of the consideration are yet to be agreed, while the board has yet to review the US operator’s proposal.
Discussions are described as being at a "preliminary stage," with no agreement reached over the structure and value of the transaction; nor is there any "certainty" a sale will be reached.
Crown is using Goldman Sachs and UBS as financial advisors, with Ashurst acting as legal advisor for the potential deal.
Wynn Resorts' share price has risen steadily so far this month, growing from $129.34 to $144.85.
Meanwhile, Crown has seen its share price jump from A$11.72 ($8.38) to A$14.06 following confirmation of the talks.
Gambling Insider has contacted Wynn Resorts for comment.