Carl Icahn takes over Caesars
The billionaire has agreed to take on a quarter of the casino operator’s board and will have major influence on the next CEO’s appointment.
US.- Carl Icahn and Caesars Entertainment Corp. have agreed to let the hedge fund activist to take over a quarter of the company’s board. The billionaire, who owns nearly 10% of the operator’s stake, will have major influence on the next CEO’s appointment, which may lead to a merger in the near future.
The 12-member board will see three executives step down (John Boushy, Matthew Ferko and Christopher Williams) to give way to Icahn Enterprises CEO Keith Cozza, Icahn Enterprises board member James Nelson and Icahn Capital fund manager Courtney Mather. According to the agreement, which needed to be signed before Friday (it was), Mr. Icahn needs to keep at least a 5% stake in the Las Vegas-based company to hold the three seats.
While Cozza and Mather will mainly serve on the strategy and finance committee. They will also be on the CEO search committee, giving the billionaire major leverage on who Mark Frissora’s replacement is going to be after he leaves by the end of April. Should the committee fail to appoint a successor before April 15, Icahn will receive a fourth seat under the agreement.
“While we initially thought Caesars’s next CEO could come from outside the gaming industry, we suspect Mr. Icahn will lobby for a seasoned gaming executive,” SunTrust Robinson Humphrey gaming analyst Barry Jonas, said.
