The property is located directly across from Wynn's Encore. Deutsche Bank analyst Bill Lerner said in a note to investors that Wynn Resorts had previously indicated an interest in this land via a similarly described swap for shares that would be valued at a fraction of Elad's purchase price. Neither Wynn nor Las Vegas Sands has filed anything regarding the matter with the SEC.

"Perhaps LVS is being confused for Wynn by this Israeli paper," he wrote. "However, if LVS proceeds with this transaction, the company would be issuing more stock for future 'greenfield' development in an environment where it has been impossible to raise capital to complete their original development pipeline."

Similar to LVS' recent primary equity offering, Lerner says the transaction as described would be further dilutive. "Furthermore, LVS has contiguous land in what we call its 'toilet bowl' site, which is 18 acres behind its Venetian/Palazzo/Sands Expo center in Vegas, so in our view the Elad site makes strategically less sense."

After acquiring the New Frontier property El-Ad razed the existing hotel-casino. In March 2008, it brought on a partner--Property and Building Corp. Ltd.--a subsidiary of Tel Aviv-based IDB Development Corp., Israel's largest business group. That same month the JV--El-Ad IDB Las Vegas LLC--received approvals from the Clark County Commission for a multi-billion-dollar Vegas incarnation of the landmark Plaza Hotel in New York City, which El-Ad acquired in 2004 for $675 million.

At that time, the JV estimated that site excavation would begin before the end of 2008. The start date was subsequently delayed until May 2009, as were the payments on $625 million of acquisition debt from Goldman Sachs Group and Credit Suisse Group. "The delay is to allow us time plan and ensure the plans are fully complete and that all bids are in before construction can begin," Mike Naftali, a top executive with El-Ad, told GlobeSt.com in August through a representative. Once excavation begins, the project will take 30 months to complete, he said.

The development plan calls for seven high-rise towers atop a mid-rise podium. The structures would house 4,100 hotel rooms; 2,600 condominium units; 175,900 square feet of gaming; 480,000 square feet of retail and restaurant space; 539,607 square feet of convention space; a 50,000-square-foot health club; a 1,500-seat theater; and 227,038 square feet of recreation space for pools and other amenities.

Shares of Las Vegas Sands Corp. ended the trading day Tuesday at $8.40, off $0.08 on the day. Shares of Wynn Resorts closed at $55.28, up $2.98 on the day.