Published on: December 17, 2024, 11:52h.
Last updated on: December 17, 2024, 11:52h.
Tilman Fertitta’s potential role as US ambassador to Italy could impact his involvement with Wynn Resorts (NASDAQ: WYNN) as he owns nearly 10% of the stock.
Rumors suggest that President-elect Donald Trump is considering Fertitta for the ambassadorship to Italy. Multiple news outlets reported on this, indicating its credibility. Fertitta, a supporter of Trump and other Republican campaigns, might not actively pursue changes at Wynn if he takes on the diplomatic role, as per a CNBC report.
If he decides to do that, he’s not obviously going to be an activist” in Wynn,” reported David Faber of the financial news network. “My understanding is he’s more leaning towards doing it, but we’ll see.”
While not all ambassadorships hold the same importance, Italy’s position as a long-standing US ally and the Eurzone’s third-largest economy places it higher on the spectrum. Moreover, Fertitta’s potential appointment may not be controversial, but the confirmation process is time-consuming and involves intense personal scrutiny, suggesting he needs to prepare for it as a priority.
Fertitta Likely to Stay Passive with Wynn Investment
A filing with the Securities and Exchange Commission (SEC) on Nov. 13 revealed that Fertitta increased his stake in Wynn to 9.9% from 6.1%, leading to speculation about his intentions with the casino operator.
However, analysts quickly dismissed the idea of Fertitta becoming an activist or acquiring Wynn. This opinion was shared before the news of the possible ambassadorship emerged.
Despite becoming the second-largest individual Wynn shareholder after Elaine Wynn, the general belief is that the complexity of Wynn’s Macau licensing and other projects, along with the need for significant capital, could deter Fertitta from making a takeover bid.
The speculation about Fertitta’s potential actions at Wynn stems from his desire to control a Las Vegas Strip property and his history of transitioning from a passive investor to an activist.
Italy Ambassadorship Could Maintain Fertitta’s Passive Role
Fertitta already manages a vast business empire, including car dealerships, restaurants, and real estate, in addition to his Golden Nugget casinos and the Rockets.
Moreover, executing a corporate takeover requires meticulous attention to detail, especially at the scale needed to engage Wynn — something Fertitta has not expressed interest in pursuing.
In conclusion, with a potential move into international diplomacy on the horizon, Fertitta may find it more convenient to remain a passive investor in Wynn for the time being.