Fertitta in weekend deal talks to acquire Caesars, while billionaire Carl Icahn waits in the wings
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The deal, if it gets done, would not be finalized until early April and is not expected to close until 2027.
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In this article CZR Follow your favorite stocks CREATE FREE ACCOUNT Caesars Palace Las Vegas Hotel and Casino located along the Las Vegas Strip in Las Vegas, Nevada Robert Alexander | Getty Images Tilman Fertitta's Fertitta Entertainment is actively negotiating a deal to acquire Caesars Entertainment , according to sources close to the situation. The deal terms currently stand at $32 per share, with an equity value of $6.5 billion and an enterprise value of $31.5 billion, given Caesars' substantial debt, the sources said. The deal, if it gets done, would not be finalized until early April and is not expected to close until 2027. The talks are taking place within a 45-day exclusive window, according to the sources. The talks are happening this weekend at Fertitta's headquarters, the Post Oak Hotel in Houston. To satisfy ethics requirements in becoming the U.S. Ambassador to Italy in 2025, Fertitta stepped down as CEO of the company that includes Landry's, the Houston Rockets, and the Golden Nugget casino in Las Vegas. "As a matter of policy, we do not comment on market rumors or speculation," Caesars said in a statement. Fertitta did not respond to CNBC's request for comment. On Wednesday, The Wall Street Journal reported billionaire Carl Icahn made a bid of $33 per share and was topped by Fertitta's bid of $34 per share. Sources on both sides of the negotiations told CNBC they suspect Icahn is trying to drive up the deal price to increase the value of his own stake in Caesars. According to FactSet, Icahn owns 1.2% of outstanding shares, although one source said his overall holdings in Caesars total some 18 million shares, including derivatives. Representatives for Icahn declined to comment. Carl Icahn speaking at Delivering Alpha in New York on Sept. 13, 2016. David A. Grogan | CNBC Sources familiar with the situation say Icahn truly wants to buy Caesars and first made a friendly bid in January, offering $28.50 per share and assuring current management would remain ...
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