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NEWS 18 March 2019

Eldorado Resorts and Caesars Entertainment in early merger talks

By Tim Poole

Eldorado Resorts and Caesars Entertainment are said to be in the early stages of merger discussions.

According to Reuters, a source has said Caesars is providing confidential financial information to Eldorado as the operator carries out due diligence.

No offer has been made, according to the source, while there is no certainty a deal will be reached.

The reports come as no surprise following activist investor Carl Icahn’s purchase of a 17.75% stake in Caesars.

Icahn has urged Caesars to pursue an M & A strategy and, having been granted three seats on the board with a view to a fourth by the operator, now wields considerable influence within the company.

Whether anything will materialise from these early talks is unclear, as initial contact between the two firms was already reported in 2018.

Further deals rumoured to have been explored were a Caesars merger with MGM Resorts International, as well as Caesars rejecting a reverse merger offer from Golden Nugget.

However, with Icahn now the largest individual shareholder, there may be far more willingness on the company's part to reach a deal with Eldorado.

Gambling Insider has reached out to both operators for comment.

RELATED TAGS: Casino | Mergers & Acquisitions | Industry
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