Shares of Wynn Resorts (NASDAQ: WYNN) pointed slightly upward Friday amid a report that MGM Resorts (NYSE: MGM) could be interested in buying its casino rival.
MGM's expressed interest in Wynn came from back-channel approaches, sources told the New York Post.
Despite earlier claims by MGM chief executive James Murren that it would be unlikely his company would make a bid, one source told the Post that Wynn CEO Matt Maddox could be tempted to sell if the price was right.
Other sources told the NY Post that MGM still has time to change its mind and that no official talks have occurred.
Both companies are outperforming the S&P 500 so far this year; Wynn is up 7.5% and MGM is up 6.5%. Wynn shares took 29 cents Friday morning to $181.53, while MGM shares declined 20 cents to $35.37.
The rally in Wynn stock Friday morning, however, comes amid turbulence for the resort casino company.
Steve Wynn, the former chief executive, came under fire in January after a Wall Street Journal report detailed allegations of decades of sexual misconduct by the gambling mogul.
Following strong public backlash — and a loss of more than 10% in the company's stock value — Wynn resigned as CEO and chairman in February.
Wynn Resorts said last month Wynn no longer holds a stake in the company after he agreed to sell all his remaining eight million shares.
