Caesars’ shareholders push to sell company
Canyon Partners LLC, the operator’s largest shareholder, is calling to have an open sale process and find a buyer for Caesars Entertainment Corp.
US.- Several stockholders had already been discussing the issue but Caesars Entertainment Corp’s largest shareholder has also jumped in. Canyon Partners LLC has called to conduct an open sale process and pressured the casino giant to start looking for a buyer.
The company released a statement on Friday and explained that its “current view is that shareholder value would be best served and enhanced by an open sale process that will be presented to shareholders for a vote thereon.” The request follows a decade of financial struggle for Caesars, which came up with new shareholders and a board just two years ago.
Canyon holds over 10% of the operator at 70 million shares and joined other investors such as Oppenheimer Funds (10 million shares), which said Caesars shouldn’t name a new CEO or board members until current management considers a sale. Their comment follows the upcoming exit of Chief Executive Mark Frissora who said he’ll step down at the end of April.
Furthermore, Carl Icahn, who owns a 9.8% stake in the company said a sale would be the best option going forward. Last year, Golden Nugget owner Tilman Fertitta proposed merging his business with the company, but was rejected, even though he remains interested.
