An American tycoon who owns a Picasso painting, with an estimated value of $138.26 million, was forced to pull out of a deal to sell the painting after he punched a hole through it with his elbow.

According to BBC, Steve Wynn was showing his guests "Le Reve" (The Dream) in his office in Las Vegas when he accidentally hit the painting with his elbow.

Director and screenwriter Nora Ephron who was one of the guests in Wyn's office at the time of the accident, wrote about it on her blog site.

She told BBC the tycoon raised his hand then "at that moment, his elbow crashed backward right through the canvas. There was a terrible noise."

She adds, "Smack in the middle... was a black hole the size of a silver dollar. 'Look what I've done,' he said. 'Thank goodness it was me'."

Wynn, who was suffering from retinitis pigmentosa, an eye disease affecting peripheral vision, said he intends to repair the coin-sized hole.