Apr. 23--Reversing a statement he made two years ago, Steve Wynn said Monday he plans to sell public shares in his redevelopment of the Desert Inn. 

When he sold Mirage Resorts to MGM Grand, Wynn vowed he would never operate another publicly traded company. 

Wynn is now completing financing arrangements for the $1.63 billion Le Reve megaresort he plans for the southwest corner of the Desert Inn property, and is also in the midst of negotiations for a piece of land on which to build a casino in Macau. 

He said after buying the Desert Inn site that he wanted to retain private ownership of the 218-acre complex, in part, because of his dislike for the short-term, bottom-line driven mind-set of the equity markets. 

Wynn initially said he would turn to banks, private investors and the bond market to finance his new megaresort. 

On Monday, he explained his change of mind. 

"One, normalcy has returned to the stock market and gaming stocks have regained their value," Wynn said. "What was going on during the dot-com craze was an aberration, but the market has returned to normal, to more rational operation. 

"Two, you really have to be able to offer a stake in the business to attract top-quality staff. This will allow us to offer stock options." 

Wynn noted that the equity infusion would reduce the debt-to-equity ratio of Le Reve's financing. 

"The more money we get (through an IPO), the more leverage we get," he said. 

Wynn declined to say what portion of the company will be sold to the public, but he noted that the offering would probably try to raise about $200 million. 

"It's not about raising $200 million," Wynn said, explaining that he and his partners could have easily contributed the money themselves. 

Still, casino industry analyst John Leupp of Credit Suisse First Boston was taken aback by Wynn's decision to take his company public. 

"I'm surprised because of the frustration Wynn expressed about being a public company," Leupp said. "The investment market exists on a quarter-by-quarter basis and worries about quarterly fluctuations in casino hold percentage, but Wynn built Bellagio to generate cash for 30 years. When Bellagio's initial results were not as good as had been expected, the analysts complained. Wynn's reluctance to operate as a public company comes from that frustration." 

Initial public offering expert David Menlow said the IPO market has yet to rebound from the go-go days of the late '90s. 

"For a quality offering there's never a wrong time," said Menlow, president of IPOfinancial.com. "In general, IPO valuations are low, and a wonderful time to be a buyer." 

Wynn's not a buyer, of course, but casino industry stocks have recently fared better than the broader markets, Leupp noted, meaning that the time may be right for an IPO. 

"It's a very good time to be selling gaming equity," Leupp said, noting that the top casino companies' share prices have recently hit 52-week highs. 

Menlow agreed with Wynn that an IPO could help attract talent to the company, noting that the ability to sell shares through a public market would make the company's stock options more attractive. 

If Wynn acquires the Macau parcel and finalizes a deal to open at least one casino in the Chinese jurisdiction, his Macau and Le Reve properties will both be owned by the publicly traded company. If Wynn is unable to complete a Macau deal only the Las Vegas operation would be included, he said. 

The casino developer also disputed a recent published report suggesting that Wynn and Horseshoe Gaming Holding Corp. Chairman Jack Binion had talked about a merger of their two companies. 

"Jack is a great guy and he's been a buddy for 35 years," Wynn said. "But there's no truth to the story. Nothing would be better than to do business with Jack, but we haven't talked about going into business together. Jack's probably getting ready to do something, but not with me." 

Wynn expects his company to be listed on the New York Stock Exchange, and the 60-year-old was excited over his likely ticker symbol. 

"It's tentative, but it looks like it will be `W.' " 

The company's official name has also yet to be determined, with Wynn Resorts and The Wynn Group the top options, he said. 

Groundbreaking for the water-themed Le Reve is expected to take place between Memorial Day and June 10, Wynn said. Details of the property's financing arrangements will be released at the same time. 

Wynn said Le Reve construction will take about 30 months, with its opening slated for November 2004. 

He said in May that construction would begin last fall and has several times delayed his timetable for completing Le Reve financing and breaking ground on the project. 

"There's no problem with the financing," Wynn explained. "We're ready to go, and I'm delighted to be back in the game." 

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(c) 2002, Las Vegas Review-Journal. Distributed by Knight Ridder/Tribune Business News. MGG,