Wynn buys into Republic
Steve Wynn, the flamboyant chairman of Mirage Resorts Inc., has purchased a 9 .5% stake in the film and video production company for $ 2.9 million.
Wynn wasn't available for comment, having suffered a skiing injury during the week.
In a Securities & Exchange Commission filing, Wynn stated that the position is for investment purposes only. Reportedly, Wynn, a friend of Republic chairman Russell Goldsmith, has had a small position in the company for some time.
"We're very pleased with the confidence Steve has shown in the company," said Goldsmith.
Third major investor
He's not the only one bullish on Republic. This is the third major investor to take a position in Republic in a year.
Just last month, Blockbuster Entertainment Corp. paid a 30% premium to snap up 35% of the company, buying shares at $ 10 apiece for a total of $ 25 million.
Wynn's average cost hovered at $ 9.35 per share on the open market.
In early 1992, Carlton Communications' Technicolor Inc. bought 6% of Republic for $ 3 million.
Currently, Republic has approximately 4.5 million Class A and Class B shares outstanding.
Blockbuster's position will require the company to issue 2.5 million new shares of the Class A stock, diluting Wynn's stake in the company accordingly.
