Caesars Entertainment has been approached about the merger with Golden Nugget

Tilman Fertitta, the billionaire owner of the Houston Rockets basketball team, contacted Caesars Entertainment about a possible combination of his Golden Nugget Casinos chain with the owner of Caesars Palace in Las Vegas.

Mr Fertitta had been addressing Caesars in recent days, said two people aware of the situation, although they warned that an agreement was not sure of any. be concluded.

One of them stated that Mr. Fertitta made an offer to buy and buy $ 13 per share, but did not extend it to former Caesars private equity owners, Apollo Global Management and TPG Capital. The companies remain one of Caesars' largest shareholders after its bankruptcy a year ago and could be a major hurdle for Mr. Fertitta to overcome.

Shares of Caesars closed up 12.2% Wednesday to $ 10.20, worth $ 7 billion. Reuters and CNBC first reported the approach.

The title remains below its February high of over $ 14, after Caesars shocked investors this summer, saying he had seen pressure on room prices in Las Vegas.

Mr. Fertitta, who also controls the Landry's restaurant chain, bought the Houston Rockets last year for $ 2.2 billion, an NBA record. This year, he spent $ 308 million on a new Louisiana food delivery company called Waitr and opened the Post Oak Hotel in Houston.

With a fortune estimated at $ 4.5 billion by Forbes, he runs a CNBC show titled Billion dollar buyer, bought his first private plane at age 35 and owns a 40-meter superyacht.

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Tuesday, September 26, 2017

Caesars' pursuit by Fertitta comes as Mark Frissora, Caesars CEO, invests in renovating his hotel rooms, revitalizing his loyalty program and expanding his hotel business.

Mr. Frissora also expressed the hope of an increase in sports betting revenues after the US Supreme Court overturned a federal law banning match betting in all but a few states .

In a recent interview with CNBC, Fertitta said "the world of sports games will change completely in the next five years". Nevertheless, he drew attention to the pressures exerted in Atlantic City, one of the biggest hubs of American casinos, where, he added, "there is not enough room for as many casinos ".

Analysts expect consolidation among US casino owners. Penn National Gaming finalized this week its purchase of its rival, Pinnacle Entertainment, for $ 2.8 billion.

Additional report of Sujeet Indap in New York