Caesars Entertainment shares gained ground Wednesday after media reports indicated billionaire Tilman Fertitta is in exclusive discussions to acquire the casino operator. The talks are said to center on an offer of roughly $34 per share, which would place the transaction at approximately $7 billion.
Market movement followed the report: Caesars stock rose 4.7% on the session. For context, the company's shares closed Tuesday at $26.01, a price that implied a market capitalization just above $5 billion.
According to the reporting, Fertitta's vehicle, Fertitta Entertainment, has been negotiating terms that would top a competing all-cash proposal from Icahn Enterprises, the publicly traded vehicle that holds investments for billionaire investor Carl Icahn. That earlier proposal was described as being around $33 per share. The report added that Caesars has not formally rejected Icahn Enterprises' bid.
Sources familiar with the discussions cautioned that an announcement is not necessarily imminent and that the talks could fail to produce a deal. The reporting also indicated that Caesars Chief Executive Tom Reeg would likely play a role in either potential transaction.
Earlier reporting in late February had noted takeover interest in the company from Fertitta and from a consortium that included members of Caesars' own management team.
The developments represent ongoing takeover interest in a major casino operator, and the market picked up on the possibility of a sale with a notable intraday uplift in the stock. Observers cited in the reporting emphasized the provisional nature of the discussions and the potential for no agreement to emerge.
At present, the situation comprises competing offers at adjacent price points - roughly $34 per share from Fertitta's group and about $33 per share from Icahn Enterprises - and public commentary indicates both bids remain part of the negotiations landscape.