Caesars hires Goldman to ride shotgun
Caesars Entertainment, looking to fend off an attack from activist investors, has enlisted Goldman Sachs to give it advice, two sources close to the situation told The Post.
Goldman has an activist defense practice, and its hire shows the Cae- sars board is at odds with the activists who are trying to force a sale, sources said.
Meanwhile, there is belief that MGM Resorts International has interest in buying Caesars if it can do so in a friendly deal, two sources said.
Rumors of MGM’s interest among traders caused Caesars shares to rise 6.7 percent Thursday to $9.04.
MGM’s shares increased 4.5 percent, to $25.30.
There are no known talks between the gaming giants.
Several of the leading shareholders in Caesars, including Canyon Capital, are also invested in MGM.
In January, Caesars’ separately traded real estate investment trust, Vici Properties, rejected a buyout offer from MGMGrowth Properties.
Meanwhile, Caesars still has not responded to Tilman Fertitta’s offer a few weeks ago to use his Golden Nugget casino chain to buy Caesars in a reverse merger.
The Post reported exclusively on Monday that Caesars is not interested in Fertitta’s offer, concerned that it would saddle the company with too much debt.
Nevertheless, “the Caesars shareholders want something to happen,” a gaming banker said, adding that Caesars Chief Executive Mark Frissora “knows he can’t ignore them.”
The CEO’s contract expires in February 2019. He earned $29 million in total compensation last year.
Ceasars and MGM reps declined comment.