As confirmed earlier this week, Eldorado Resorts has brokered a multi-billion dollar merger agreement with Caesars Entertainment, which came after months of speculation and subsequent pressure from internal shareholders.
Talks of a merger began to spread earlier in the year after shareholder Carl Icahn purchased a 15.5 per cent share in Caesars, making him the largest company shareholder.
Continuing to press for a sale or merger, amid involvement with directorial changes, Icahn has released a statement expressing delight at the announcement.
In the statement, Icahn emphasised: “I would now like to do something that I rarely do, which is to praise a board of directors for acting responsibly and decisively in negotiating and approving this transformational transaction.”
“As a combined company, Caesars and Eldorado will be America’s preeminent gaming company. It is rare that you see a merger where because of the great synergies “one plus one equals five.” I look forward to seeing our investment prosper.
“Unfortunately, there are far too many boards that unlike Caesars, believe corporations are more like feudal systems, than democracies; that stockholders are the peasants who represent a necessary evil that must be tolerated, possibly patronised, but certainly ignored. Much like the feudal barons, they hire mercenaries (lawyers and investment bankers) to deal with these peasants (stockholders), if they become too unruly.
He added: “The recent Occidental Petroleum fiasco is a great example of how CEOs and boards will go to great lengths, including “betting the company” to serve their own agendas. If their bet is successful, they and possibly their shareholders win, but if it is unsuccessful, only the shareholders lose.
“Too many boards like Occidental’s believe they are unaccountable and cannot be removed, and therefore can do almost anything they please. This attitude is a major threat to the value of America’s companies, the stockholders of which are many middle Americans who have more of their savings invested in stocks than ever before.”
