Wynn Resorts says SEC seeks Macau donation details

(Reuters) - Wynn Resorts Inc said the U.S. securities regulators launched an "informal inquiry" into the casino company's $135 million donation to the University of Macau founder Steve Wynn.

Last month, Okada had sued and its gaming licenses in the Chinese gambling hub.

The U.S. Securities and Exchange Commission inquiry is seen as a continuation of the legal spat between Kazuo Okada, a Japanese pachinko mogul who owns a 20 percent stake in the company, and his business partner, Wynn's billionaire the company for denying him financial information related to the donation, which he termed as "inappropriate.

Okada highlighted that the last installment of the donation to the university is due in 2022 -- the same year when Wynn Macau's gaming concession expires.

On Monday, Wynn Resorts said it received a letter from the SEC asking it to preserve information relating to the University of Macau donation or any other donation, as well as any information on its gaming licenses or renewals in Macau, according to a filing by the company with the regulators.

The SEC request comes after a Nevada district court judge said last week that the company may be forced to give Okada access to its financial papers. The next hearing in the case is scheduled for February 23.

Analysts said they do not expect the SEC inquiry to reveal any wrong-doing on the company's part.

Stern, Agee & Leach's David Bain, however, said the inquiry could be an overhang for the stock, given that it trades at a premium to rivals such as Las Vegas Sands Corp and MGM Resorts International.

The donation, pledged by Wynn's subsidiary in Macau in May 2011, was approved by 15 of the 16 directors on the board.

The company said the sole dissenting vote was Okada's, who objected to "the length of time over which the donation would occur, not its propriety."

Steve Wynn played down the claims from his business partner of 12 years, calling them "hyperbole" and "half truths."

Rival Las Vegas Sands' operations in Macau, the world's biggest gambling hub, are being probed by the SEC and the U.S. Department of Justice - with allegations of potential illegal dealings with a public official.

Morningstar's Chad Mollman described Okada's lawsuit as "frivolous" and said, "Okada is using the court to resolve a dispute that could easily be resolved at board level."

In January, Okada had nominated up to four people to the board of Wynn Resorts. Steve Wynn and his ex-wife Elaine own about 16 percent of the company, according to Thomson Reuters data.

Shares of the company closed down more than 2 percent at $110.56 on Monday on the Nasdaq.

(Reporting by Chris Jonathan Peters in Bangalore; Additional reporting by Aruna Viswanatha in Washington; Editing by Gopakumar Warrier, Saumyadeb Chakrabarty)