Caesars Considering The Possibility Of Getting A New Owner

Caesars Considering The Possibility Of Getting A New Owner

Tilman Fertitta owner of Golden Nuggets approached Caesars Entertainment to make a deal. He wanted to see the two companies merge, but wanted to be the leader of both. Caesars declined this offer. Now Caesar is looking to hand over ownership to another company. It is reported the company contacted Carl Icahn in regards to this.

Ichan controls 10% of the company and Caesars has reported that the executives met Icahn recently to discuss a sale.

“Caesars Entertainment regularly engages with our stockholders and considers their ideas and input regarding stockholder value. The Board and management have engaged in discussions with Mr. Icahn and expect to continue a constructive dialogue. The Company intends to carefully evaluate Mr. Icahn’s suggestions, including his request for Board representation,” the statement read.

Additionally it was said , “Consistent with its fiduciary duties, the Board remains open to all reasonable alternatives to enhance value for Caesars’ stockholders and has and will continue to evaluate strategic alternatives presented to it across a number of factors, including potential value creation and execution risk, given our highly regulated environment in the various domestic and international jurisdictions in which we operate. Any such alternatives previously brought to the Board’s attention were considered, in consultation with its legal and financial advisers and determined to undervalue the Company and its plan to create stockholder value over the long term.”

Icahn is of the belief that the stock is undervalued and that the interest of the shareholders will be enhanced by selling the company. In a recent filing to the SEC, he reported a 10% stake purchase. He said he would nominate a slate of directors at the next shareholders meeting and will also discuss the possibility of a sale then to get their input.

Fertitta was not originally successful in getting the company to merge however, he didn’t give up either. Recently, he purchased 4 million shares which amounts to less than 1% of the company’s total.

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