Icahn’s Board Plans Approved by Caesars Shareholders
Ever since Carl Icahn bought a large share of Caesars, he has been making huge plans for the company. As his share grew, he decided to take a bold step of selecting key personnel in order to ensure that the company will have a brighter future, and avoid fiascos that were a part of its recent history. In other words, he wants to shape Caesars’ future with people he selects, and he seems to be doing a good job, as other shareholders seem to agree with his plans.
One of the main aspects of the future of the company is its merging with Eldorado Resorts. Icahn also wanted to ensure that it is successful and wanted to place skilfull people who would engage in the negotiation process and would handle big business negotiations carefully. Therefore, he submitted a list of names and waited for other shareholders to give their approval or disapproval. When the votes came in, everybody was supporting Icahn’s decisions unanimously.
Therefore, let’s mention some of the names that are going to sit around Caesars’ table. Keith Cozza is the Chief Executive Officer of Icahn Enterprises, and he is the first name that appears on the list. Other names include James Nelson, who is also a board member at Icahn Enterprises, and Courtney Mather, who is a portfolio manager working for Icahn Capital. Then, there is Anthony Rodio, whose name was mentioned many times when Icahn acquired his share of the company. Rodio is now appointed to be the CEO of Caesars Entertainment, as suggested by Carl Icahn and approved by the board.
One of the Chairmen of Caesars, James Hunt, stated that they were eager to welcome new colleagues to the team. The colleagues would bring diversity and relevant experience to the table, and the existing members of the company are looking forward to working together with them. Hunt added that they were looking forward to “further enhancing value” for all shareholders. He finished his speech by stating that the restructuring of Caesars means that they have been undergoing strategic processes to “create value.”
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Speaking of value, Hunt was partly right, as the real value was created only after Carl Icahn jumped in and bought shares. Ever since he became the largest shareholder in the company, he has been pushing for a sale. In fact, Icahn managed to achieve a lot in very little time, as he managed to sell Caesars to Eldorado for $8.58 billion in cash and stock. Furthermore, Eldorado agreed to cover the debt that Caesars created over the years, which is approximately $8.8 billion. Eldorado bought Caesars at $13 a share, which is $3 a share more than it was when the deal was announced.
However, the addition of board members was not the only thing that Icahn did, and shareholders agreed. In fact, Icahn decided that compensation packages for executives will be under review annuals and not every two years as it is currently the case. All shareholders agreed to this as well as they deem it a positive change.
The deal between Eldorado and Caesars is basically struck, but there are regulators who have to approve it, in addition to thousands of other smaller things that need to be negotiated. The two companies will merge into one, but the name Caesars will remain the official one. The new company will be led by Gary Carano, who is the current chairman of Eldorado. Another person that will be in charge is Thomas Reeg, who is currently on the position of a CEO for Eldorado.