The billionaire investor also confirmed that he is pressing for the hotel and casino operator’s sale.
Caesars’ main operating unit emerged from a complex Chapter 11 bankruptcy in the fall of 2017. The company then embarked on a multi-pronged growth strategy seeking to boost both the gaming and non-gaming segments of its business and to reduce an enormous debt.
Caesars said in its statement from earlier today that it is pursuing organic growth through investing in the innovation of its core gaming business, leveraging its loyalty and marketing programs, and capitalizing on emerging trends. The company went on that its strategy includes inorganic growth through strategic acquisitions and brand licensing opportunities.
In its statement, the operator also pointed out that it has engaged in discussions with Icahn, just as it does with all its shareholders, and that it will evaluate all his suggestions regarding stockholder value and how it could be enhanced.
In his filing, Icahn said that he believes Caesars’ stock is undervalued and that “shareholder value might be best served, and enhanced, by selling the company.” The activist investor has built a 9.78% stake in the Las Vegas gaming and hospitality powerhouse over the past few months.
It also emerged over the weekend that Golden Nugget owner, Tilman Fertitta, has, too, bought stock in Caesars and that he is still interested in merging his own gaming business with that of the Las Vegas giant. Fertitta made an offer to buy Caesars and step in as its CEO last fall, but discussions over a possible deal fell through.
Source: GMB / Casino News Daily