Carl Icahn unveils Caesars stake and plans to push for sale | Casinos & Tourism



Carl Icahn has revealed a new stake in Caesars Entertainment Corp. and called the casino operator to consider a sale.

The billionaire investor holds a 9.8% stake in Caesars, according to a document filed Tuesday. Icahn believes that the sale is the best way forward and plans to discuss with the board of directors and other shareholders his point of view, says the report. He called on the company to refrain from appointing a new CEO until he has the opportunity.

"We think that our kind of activism is well suited to the situation at Caesars, which requires new thinking, new leadership and new strategies," Icahn said in his dossier.

Golden Nugget casino owner Tilman Fertitta approached Caesars about a potential merger last year. The idea was to make sure that the biggest Caesars acquire Golden Nugget under a contract valuing Caesars at about $ 13 per share, said people aware of Fertitta's plans.

Fertitta has acquired about 4 million Caesars shares, less than 1%, because he thinks the company is undervalued, said people familiar with the subject last week.

A representative of Caesars, based in Las Vegas, declined to comment.

Icahn, who has struggled with some of the largest US companies, has a long history of mergers and acquisitions in the casino business. He agreed to sell Tropicana Entertainment Inc. to Eldorado Resorts and Gaming and Leisure Properties Inc. for $ 1.85 billion last year. He had bought the company out of bankruptcy in 2008.

In 2017, Icahn sold the Trump Taj Mahal Casino closed hotel complex in Atlantic City to Hard Rock International. He had acquired this property two years earlier after the bankruptcy, before closing it after failing to reach agreements with striking workers on wages and benefits.


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