Carl Icahn’s Stake in Caesars Entertainment Drives Share Price Surge
Reports have emerged that activist investor Carl Icahn has taken a substantial position in Caesars Entertainment, leading to a significant surge in the company’s share price.
According to Bloomberg News, Icahn’s involvement caused Caesars’ shares to jump by 15.9% on Friday, May 31, peaking at $37.07 before settling at $34.74, resulting in a market capitalization of $7.53 billion.
Historical Context
Carl Icahn has a history with Caesars Entertainment. In February 2019, he disclosed a 9.78% stake in the company and urged it to sell itself.
This move came after Caesars rejected a merger proposal from Tilman Fertitta, the owner of Golden Nugget Casinos, in 2018. Icahn’s influence led to significant changes in the company’s board, with three new directors appointed as part of a deal struck with him.
Following Icahn’s push, Eldorado Resorts agreed to acquire Caesars Entertainment for approximately $8.5 billion in cash and stock.
This merger, completed in July 2020, resulted in the combined entity retaining the Caesars name to leverage the iconic brand’s value. Icahn expressed satisfaction with the merger, which marked a notable chapter in his involvement with the company.
Recent Developments
Despite previously dissolving his stake in Caesars in 2020, Icahn’s renewed investment has reignited interest in the company’s stock.
In a recent statement on CNBC, Icahn mentioned, “I like Caesars and I own some stock, I would never do activism in Caesars.” This indicates a different approach from his previous activist role, yet his investment still significantly influences market perceptions.
The exact size of Icahn’s current stake is not disclosed, but his involvement has already had a positive impact on the share price.
This comes at a time when Caesars missed market expectations for its first-quarter results, influenced by low table hold in its Las Vegas segment.
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