Caesars Jumps on News That Icahn is Pushing for Sale
Caesars Entertainment shares rose 6 percent on news that activist shareholder Carl Icahn is pushing the company to sell.
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Icahn has a 10 percent share in the company, which currently owns 50 casinos in 13 states and five countries.
Caesars had previously rejected a bid by Tilman Fertitta's Golden Nugget, but is said to be in talks with Eldorado Resorts.
Icahn got involved after a handful of Caesars shareholders asked him to assist in the company's sale. He hasn't ruled out launching a proxy fight, which he would need to do by a March 1 deadline, sources told the Wall Street Journal.
Eldorado Resorts was formed on September 19, 2014, by the merger of MTR Gaming Group and Eldorado Holdco LLC. It later bought Circus Circus Reno and owns a 50 percent stake in Silver Legacy.
Since May 2017, Eldorado Resorts acquired Isle of Capri Casinos and its twelve properties for $1.7 billion in cash, stock, and assumed debt. It then purchased Grand Victoria Casino in Illinois for $328 million and Tropicana Entertainment for $640 million.
Eldorado Resorts has also ventured into the North American online gambling space. In November 2018, Eldorado Resorts signed a 20-year partnership with The Stars Group to expand both brands in the American online gambling market.
Caesars Entertainment was among the first casino firms to enter the Internet gaming sector in the United States.
- Aaron Goldstein, Gambling911.com
