Billionaire investor Carl Icahn is planning to Drive Caesars to consider a sale, the Wall Street Journal reports citing people familiar with matter
Reports concerning Mr. Icahn pressing for the company’s sale emerge after it became known he was quietly building a bet from the Las Vegas hospitality and gaming powerhouse.
The New York activist investor now owns 10% of Caesars. According to individuals knowledgeable about the company’s shareholder dealings, Mr. Icahn believes Caesars has “desired properties and the prognosis for Las Vegas is positive. ” The WSJ report goes on that Mr. Icahn believes the casino and hotel operator could perform better under the stewardship of “a rival. ”
It looks like the businessman will press Caesars to let its investors consider and decide on the options available and whether the firm ought to be sold.
Mr. Icahn hasn’t been the only real man to have pushed Caesars into consider divestment of resources or an outright sale. News emerged last September the New York hedge fund HG Vora had assembled a stake in the casino giant and pushed available of resources or some kind of consolidation.
Caesars emerged from a complex and lengthy Chapter 11 bankruptcy in the fall of 2017. The company has been looking to repay its behemoth debt which now stands at around $9 billion and to enhance its profitability in the competitive land-based casino and hospitality areas.
The gaming and hotel operator now manages almost 50 properties in 13 countries and five countries, including Dubai where it established two non-gambling hotels late annually. The company has stated that part of its expansion strategy would entail expanding its non-gambling portfolio.
Sale Offers
Based on WSJ’s report, Caesars has been approached by at least 2 parties with buy offers in recent months. One of the provides came from Golden Nugget’s owner, billionaire Tilman Fertitta. Sources have stated that Mr. Fertitta has proposed that Caesars get his restaurant, gaming, and hospitality companies in exchange for a majority stake. The businessman’s offer has also included him running the joint entity.
It is believed that Eldorado Resorts Inc., another Nevada-based hospitality and gaming firm, has too approached its much bigger counterpart using a purchase deal, but talks over a possible deal have dropped through.
It is to be seen whether Mr. Icahn’s drive would bring about a sale bargain happening. The New York billionaire investor is no stranger to the US online casino industry. Through the years, he purchased, operated, and marketed casino properties in Las Vegas and Atlantic City.
Mr. Icahn is also the former owner of Trump Taj Mahal which currently operates as Hard Rock Hotel & Casino Atlantic City. Hard Rock International purchased the land in the billionaire investor in 2017 and invested more than $500 million into its transformation before swinging its doors available in June 2018.
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