Carl Icahn Builds Sizable Stake in Casino Group Caesars
(Bloomberg) -- Carl Icahn has amassed a sizable position in Caesars Entertainment Inc., people familiar with the matter said, but has no plans to repeat a previous activist campaign at the hotel and casino group.
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Icahn, who pressed for the 2020 merger of Caesars and Eldorado Resorts Inc. that created the latest version of the company, is supportive of existing management.
“There’s absolutely no activism contemplated in Caesars,” Icahn said in response to a Bloomberg query. “A number of years ago we were instrumental in putting Caesars and Eldorado together. Our opinion of Tom Reeg as CEO was very high then and continues to be high at this time.”
Shares in Caesars rose as much as 18% on Friday for their biggest intraday gain since November 2022. The stock was up 11% at 2:41 p.m. in New York, giving the company a market value of about $7.6 billion. A spokesperson for Caesars couldn’t immediately be reached for comment.
Icahn has a long history of investing in the gambling sector, owning casinos from Atlantic City to Las Vegas. In 2019, he got three board seats at Caesars after building up a nearly 10% stake in the business. He later pushed for the $8.6 billion merger with Eldorado.
Caesars, the largest owner of casinos in the US, reported first-quarter results in April that fell short of investor expectations. The company cited poor weather conditions in some markets that kept gamblers from coming out.
Icahn said in response to a separate query that he has no position, or plans to take one, in Penn Entertainment Inc., another casino company that is facing pressure from activist investment group Donerail Group.
--With assistance from Christopher Palmeri.
(Adds Icahn responses in second and final paragraphs.)
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