Eldorado Resorts To Acquire Caesars Entertainment
A merger between Eldorado Resorts and Caesars Entertainment could be announced today that will see Eldorado (which is the smaller of the two companies) pay somewhere in the region of $13 a share, representing a 30% premium on Caesars shares.
That would value Caesars at $18 billion in total including all debt, if the deal happens which is not highly likely it would mark a huge turnaround for the gambling firm that in 2008 saw an ill-fated leveraged buyout that eventually became a $20 billion debt pile for Caesars.
However over recent years Caesars has managed to restructure the company and debt and with activist investor Carl Icahn only recently take a 20% stake in Caesars things have looked a lot better for the Las Vegas based casino company.
Ever since Icahn came on board he has pushed for a sale or merger of Caesars and now looks like he has his way. It is understood the two companies have been in discussion for sometime but the sticking point was the share price. It is believed that Eldorado wanted to offer around $11 per share, however Carl Icahn wanted $13 and has got it.
Eldorado Resorts has been rising rapidly as a major casino player in the US which was founded in 1970 by the Carano family. From just a regional casino company it then acquired both the Isle of Carpi casino chain and Tropicana Entertainment for $4 billion.
This deal will propel dorado ResoEldorado Resorts in to a world player in the casino business.
