The U.S. online casino operator Caesars Leisure Corp is in talks to supply Carl Icahn a job in deciding on its new CEO as a part of a settlement that might additionally give the billionaire investor board seats, folks acquainted with the matter mentioned on Sunday. The consultations come after Icahn disclosed a 9.8 % stake in Caesars on Tuesday and stated he might nominate a slate of administrators to the corporation’s board. Icahn additionally requested Caesars to launch a course of to discover a sale.
The corporate responded on Wednesday that each one the offers it had explored so far undervalued it and didn’t create sufficient worth for shareholders, however famous that it’ll proceed to judge strategic options introduced to it. Icahn has proposed Anthony Rodeo, the CEO of privately held online casino gaming firm Affinity Gaming because the successor to Mark Frissora, who is because of a step down as Caesars CEO later this 12 months, the sources mentioned. The rodeo was beforehand CEO of Tropicana Leisure Inc, one other online casino and resort operator that Icahn bought final 12 months to see Eldorado Resorts Inc for $1.85 billion.
Caesars already has a shortlist of CEO applicants and has shown to Icahn that it’s prepared to think about Rodeo as nicely, the sources mentioned. Instead, the corporation may provide Rodeo a task in overseeing its operations, a few of the sources added. Caesars doesn’t presently have a chief working officer, though a few of these duties are carried out by its president, Tom Jenkin. Caesars is open to Icahn should a say within the choice of the corporate’s new CEO, as he has requested, the sources stated.
Caesars can also be open to giving Icahn board illustration, the sources indicated, though the variety of council seats and the names and titles of these filling them are nonetheless underneath negotiation, the sources mentioned. Icahn may obtain a significant minority of the board’s 12 seats as a part of any deal, the sources stated.