Las Vegas casino giants MGM Resorts International and Caesars Entertainment Corp. are reportedly discussing a merger to create a behemoth company that would control about half of the Las Vegas and Atlantic City gaming and hospitality markets, the New York Post reported citing unnamed sources familiar with the ongoing talks.
According to NY Post sources, MGM has tapped investment bank Morgan Stanley and law firm Weil, Gotshal & Manges to study a potential merger with Caesars. However, there is still no offer on the table, sources have pointed out. After it became known that Caesars has rejected a reverse takeover offer from the smaller Golden Nugget hotel and casino chain.
People familiar with the matter have also revealed that activist hedge funds, which collectively own about a quarter of Caesars, have been pushing for a MGM tie-up for some time now. A merger of the two operators would create a behemoth gambling giant with a market capitalization of more than $21 billion. According to the NY Post’s sources, Canyon Partners, which owns shares in both Caesars and MGM, is among the hedge funds supporting a deal between the two companies.
Full Content: New York Post
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