NEW YORK (Reuters) – US casino operator Eldorado Resorts Inc has agreed to a deal with Caesars Entertainment Corp. Completing Cash & Stock Deal That Worth It People familiar with the matter said they had $ 18 billion in debt on Sunday.
The deal comes three months after Reuters reported that Caesars had agreed to grant Eldorado access to its books under pressure from billionaire Carl Icahn, who had been appointed to the Caesars Board earlier this year.
The deal, which is expected to be announced on Monday, is rated by Caesars at just under $ 13 per share, according to sources. The shares of the combined company would be roughly divided between the shareholders of Eldorado and Caesars, the sources said.
The sources were asked not to be identified because the matter is confidential. An Eldorado spokesman said the company had not voiced rumors or speculation. Caesars did not respond immediately to requests for comments.
The combination of the two companies would make a serious competitor to major players in the casino industry such as Las Vegas Sands Corp., Wynn Resorts Ltd. and MGM Resorts International.
Caesars shares closed at $ 9.99 on Friday. The company, which emerged from bankruptcy in 2017, operates casinos with the brands Harrah and Horseshoe. At the end of December, the company had 53 properties in 14 US states and 5 countries outside the US.
Eldorado has a market value of $ 4 billion. At the end of March, it also had long-term debt of $ 3.1 billion. It owns and operates 26 properties in 12 US states.
Reporting by Greg Roumeliotis; Editing by Peter Cooney