It appears that one of the most famous casino investors, Carl Icahn, just got what he was after. The billionaire has been working on trying to make sure this deal gets underway and now it finally has. This means that Icahn will see the selling of the Caesars and the buyer is Eldorado Resorts. The deal is, strictly speaking, a merger that will, if successful, create a new huge casino operator. In fact, it will be one of the biggest in the world.
The cost of this will be a stunning $18 billion for Eldorado to make it happen. Earlier, rumors were rife that this company could eventually purchase Caesars. Earlier, it appears that the amount on offer did not get the Caseras Board of Director’s approval. Finally, Eldorado agreed to pay $13 per share, which is one third higher than Caesar’s recent stock price. It is also about $2.5 per share higher than what most analysts believed Eldorado was looking to seal the deal.
Currently, the reports point to a combination of $8.4 per share in cash and the rest in Eldorado common stock as a form of a payout. Now, reports are showing that Eldorado will take 51 percent of the opera art and Caesars will have 49 percent. Most likely, the Caesar name will not be taken down. With a combined market capitalization of just below $11 billion, the new company will be the fourth-largest casino operator in the United States.
Carl Icahn is likely very happy with the development. This investor bought his shares of the company for about $9, give or take half a dollar. He said in a statement on Monday that he was often critical of the Caesars Board, especially after his public stance that they should sell the company. Now, however, he was ready to praise the same board, saying they acted decisively and responsibly during the negotiations.
This led to them approving this, as Icahn called it, transformational process. Now, he believes, once the transaction is complete, the company will become the preeminent provider of gambling services in the US. While no one can tell if this will happen or not, one thing is for sure – Icahn will come out from the deal with a lot of money. With a return of investment of around 40 percent, he is certainly content with how the investment turned out.
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