Wynn shares rise on report MGM could be interested in buying casino rival

Shares of Wynn Resorts rose Friday after a report said MGM Resorts could be interested in buying its casino rival.

MGM’s expressed interest in Wynn came from back-channel approaches, sources familiar with the situation 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 New York Post that Wynn CEO Matt Maddox could be tempted to sell if the price was right.

Other sources told the Post that MGM still has time to change its mind and that no official talks have occurred.

Wynn shares climbed 2.3 percent in premarket trading following the report, while MGM’s stock fell 0.2 percent. During regular trading Friday morning, Wynn was up 0.3 percent and MGM was down 0.6 percent.

Both companies are outperforming the S&P 500 this year; Wynn is up 7.5 percent and MGM is up 6.5 percent.

Wynn stock has encountered turbulence after The Wall Street Journal detailed allegations in January of decades of sexual misconduct by then-CEO Steve Wynn.

Following strong public backlash — and a loss of more than 10 percent 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 8 million shares.

Wynn Resorts did not immediately respond to CNBC’s request for comment.