CZR Stock Climbs On Report Of Buyout Talks With Billionaire Tilman Fertitta
Synopsis
The Wall Street Journal reported, citing people familiar with the matter, that Fertitta's company Fertitta Entertainment has been discussing paying around $34 a share for Caesars.
- It is possible that the talks might not culminate in a deal, the report added.
- Fertitta’s bid reportedly tops a rival offer from investor Carl Icahn’s firm for Caesars.
- Icahn’s offer has not been officially rejected by Caesars.
Shares of Caesars Entertainment (CZR) rose 12% on Wednesday following a report that billionaire Tilman Fertitta has been in talks to buy the gaming company for $7 billion.
The Wall Street Journal reported, citing people familiar with the matter, that Fertitta's company behind the Golden Nugget casino chain, Fertitta Entertainment, has been discussing paying around $34 a share for Caesars. The offer price represents a premium of about 31% from the stock’s closing price on Tuesday.
It is possible that the talks might not culminate in a deal, the report added.
Competing Bids
Fertitta’s bid reportedly tops a rival offer from investor Carl Icahn’s firm for Caesars. Icahn Enterprises (IEP) had made an all-cash offer of about $33 per share for Caesars, the report said, while adding that Icahn’s offer has not been officially rejected by Caesars.
Late last month, the Financial Times reported that Caesars is also considering a possible management-led buyout. Shares of the company closed up 19% on the day.
Eldorado Resorts completed its acquisition of Caesars Entertainment Corporation in 2020 for approximately $17.3 billion, creating the largest U.S. casino operator. The merged entity rebranded as Caesars Entertainment.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around CZR shares rose from ‘bearish’ to ‘bullish’ territory over the past 24 hours, while message volume increased from ‘extremely low’ to ‘low’ levels.
CZR stock has risen 4% over the past 12 months.
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