Eldorado and Caesars One Step Closer to Merging
Nevada-based Eldorado Resorts may soon acquire American operator Caesars Entertainment, reported The New York Post.
Previously, Caesars contemplated a $7.6 billion merger with British bookmaker William Hill, with talks coming to a halt because of price.
Eldorado and Caesars have been in lengthy negotiations since March, and are said to be amending the cash-and-stock deal. The former wants to put forward a proposal that will be financially appealing to Caesars.
On June 6, The Post reported that Eldorado approached Caesars with a cash-and-stock proposal, valuing each Caesars’ share (CZR) at around $10.50. At the end of the same day, CZR were being traded at $9.13.
Caesars’ biggest stakeholder Carl Icahn declined the offer, considering it to be “underwhelming.”
Following the rejection of this proposal, the two companies are thought to be amending the details and preparing a new offer. The agreement might be made public soon, and the announcement may hit the news next week.