Icahn directors to take place on Caesars Board of Directors

Associated press

Friday, March 1, 2019 | 8:23

Caesars will replace three members of its board with directors chosen by billionaire Carl Icahn, who wants fundamental changes in the company of casinos and resorts.

Icahn recently revealed a 10% stake and last week the Las Vegas company acknowledged discussing its leadership with the activist investor. Icahn also said in a regulatory filing that he wanted to put the company on the sales block.

The company announced Friday that Keith Cozza, Courtney Mather and James Nelson of the Icahn Group will immediately take the place of three members of the board of directors. Icahn wants to have a say in the succession of CEO Mark Frissora, who guided Caesars in his reorganization of the bankruptcy that has lasted for over two years, resigns.

Frissora had to leave last month, but this departure was postponed until the end of April. Icahn said that he did not want Frissora's term to be extended.

The Icahn Group, under the agreement announced Friday, has the right to appoint a fourth director if Caesars does not appoint an acceptable CEO for new board members within 45 days.

Icahn said Caesars underperformed rivals. The stock price has certainly lagged behind other major casino companies, having fallen by 30% in the last 12 months.

The shares of Caesars Entertainment Corp. rose 2% before the opening bell.