Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, January 18, 2019

Article Excerpt

CAESARS ENTERTAINMENT CORP., $8.95, symbol CZR on Nasdaq, operates 49 casinos in 13 U.S. states and five countries. Those properties include Caesars Windsor in Canada. Activist investor Carl Icahn is now reportedly building a sizable shareholding in the company. Although the exact size of his current stake is unknown, Icahn’s interest in Caesars suggests he’s ready to reenter casino investment after selling Tropicana Resorts in April 2018 for $1.85 billion. Icahn first invested in Tropicana in 2008. In addition to his association with Tropicana, Icahn also owned the failing Taj Mahal casino in Atlantic City. He sold it in March 2017 to Hard Rock International after losing more than $300 million operating the facility. In October 2018, Tilman Fertitta, the billionaire owner of the Houston Rockets NBA franchise, Landry’s restaurants, and the Golden Nugget casinos, made an offer to merge with Caesars. Under the proposed deal, Fertitta would have become the CEO and the largest shareholder of the merged company. The two entities would have…