UPDATE: Wynn Resorts Retracts Filing On Cotai Land Concession

Wynn Resorts Ltd. (WYNN) retracted a regulatory disclosure about a land concession deal in Macau, saying the filing was made in error.

The casino operator's shares rose 6% on nearly twice the average daily volume early Friday on an 8K filing that indicated a deal was in the works to build a new casino on the Cotai strip in Macau. Trading on the company's stock was even halted pending an announcement.

"A Current Report regarding the gazetting of the Cotai Land Concession Contract...was filed by mistake by the Company's agent," Wynn's filing said, referring to a listing that would confirm final approval of the contract.

Taking responsibility for the mishap was law firm Skadden, Arps, Slate, Meagher & Flom LLP, which released a statement late Friday blaming a clerk for "inadvertently" sending the 8K. "We have taken steps to rectify the situation as quickly as possible and are reviewing what occurred to ensure that it cannot happen in the future," Skadden said the release.

While some of the steam has deflated from the company's stock, it has closed sharply higher as investors suspect something is still afoot despite the retraction.

The company's shares rose 4% to $127.27 in trading Friday. Wynn and rivals have been angling to build casinos in Macau's Cotai area for some time with government approvals initially expected by 2010. Cotai is considered the next critical expansion area for Macau casino operators, which are highly dependent on the former Portuguese colony for revenue. Wynn currently has two casinos in Macau.

"In our view, this erroneous filing might be interpreted by more bullish investors that an official approval...of Wynn's Cotai project is or could be imminent," said Cameron McKnight, an analyst at Wells Fargo. "Balancing this view is the potential that this error could delay the process further."

He noted that draft of the land concession contract published in the filing made no reference to the number of gaming tables at the property but did note Wynn's resorts will contain a gaming area and the operation of "games of fortune or other games."

-By A.D. Pruitt, Dow Jones Newswires; 212-416-2197; angela.pruitt@dowjones.com

--Kathryn O'Keeffe contributed to this article.

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