Carl Icahn, a major shareholder in Caesars Entertainment, has always been clear that he intended to sell the casino company. And now it seems that the Board of Directors has agreed, as we’ve learned in the headlines recently. However, it wasn’t a popular decision with everyone. And some directors even resisted the deal. Indeed, a number of the board members were holding out for a better deal. And they were hoping to get more money than what Eldorado was offering.
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However, Icahn was not happy with a delay. And apparently, he would have wanted things to move more quickly. In fact, one media outlet Post stated, “he would be willing to dump the company in the lap of Eldorado Resorts as quickly as possible if it were up to him.” So is it what happened?
Setting His Sights Low
Rumour had it that Icahn wasn’t looking for a huge deal anymore. Perhaps the ageing New York Billionaire found himself content with his current assets. In fact, the word on the street was that Icahn was happy to accept an offer of $10.50 per share, which was much lower than the board hoped for. But he owned 28.5% of Caesars back then. And consequently was in a strong position to push his agenda.
And let’s not forget that Icahn had a total of 3 seats (out of 11) on the board. Plus, he was the man responsible for appointing Tony Rodio as CEO too. Some say that Rodio’s seat evidently helped Icahn to convince the rest of the board who finally agreed on a transaction with Eldorado earlier this week.
Buy and sale = profits (?)
If we look back at history, we’ll quickly realize that Icahn originally bought his shares at around $9. So even selling Caesars at a bargain prize meant that he still profited from the transaction. Now for more details on the sale itself, stay tuned for our next news. The story is developing quickly.