Report: Caesars, Carl Icahn Getting Close On Deal, But Price Is Sticking Point

Caesars Entertainment Corporation CZR is looking to sell itself for $13 per share, but billionaire investor and major shareholder Carl Icahn is willing to accept a lower offer, according to the New York Post.

What Happened

Caesars received an offer to sell itself to rival casino company Eldorado ERI for $10.50 per share. Caesars' board rejected the deal with the support of Icahn, who owns a 28.5% stake. However, the Post said the offer could be close to what Icahn is willing to accept as he is at odds with the board's $13 per share goal.

A source close to the matter told the Post Caesars is "getting close" to closing a deal as it's exploring options at a "price that is right for all shareholders."

Why It's Important

Three of the eight Caesars board members were appointed by the activist investor and the recently appointed CEO Tony Rodio is also considered an Icahn ally. Coupled with Icahn's stake, a deal with Eldorado could pass at close to $12 per share, a source said.

Icahn would net an approximate $3 per share profit as he bought most of his stake in early 2019 at around $9 per share.

Another source familiar with Icahn's operations told New York Post Icahn is likely to win the battle. After all, no is "better at getting things done than Carl."

Caesars closed Monday's session at $9.85 per share.

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