Wohl & Fruchter LLP has reopened its investigation into the proposed $17.6 billion acquisition of Caesars Entertainment by Fertitta Entertainment. The trigger was a regulatory filing that disclosed a higher offer for the casino operator.
What is known
The Fertitta deal values Caesars at $31 per share in cash. The definitive proxy Caesars filed with the SEC on 25 August showed an Icahn Group bid of $34 per share in cash during the go-shop period. The Caesars board supports the Fertitta offer and has recommended that shareholders approve it at a vote on 22 September.
The firm began its review before the deal was announced, when $31 a share came in below the price targets of several Wall Street analysts. Some of them put Caesars in the mid-to-upper $30s.
Joshua Fruchter, founding partner at Wohl & Fruchter, said the firm is looking at whether the Caesars board acted in shareholders' interests in recommending the sale, whether the price is fair to Caesars shareholders and whether all material information about the transaction has been fully disclosed. He asked Caesars shareholders with questions to contact the firm. No class action has been announced.
For shareholders the date that matters is 22 September. If the Fertitta offer clears the vote, the Icahn bid stays a line in the proxy rather than an alternative on the ballot.
