Is Caesars Entertainment primed for a takeover?
Noted activist investor Carl Icahn reckons debt-laden Las Vegas casino operator Caesars is ripe for acquisition. He recently took a 15% stake in the troubled company in an attempt to profit from the anticipated premium. So, should equity investors get involved? Read on to find out our thoughts.
Owning a big US casino should be the next best thing to having your own money-printing machine. After all, the house takes a cut from every hand and the odds on most games are weighted against gamblers who are happier to part with their cash once they have been plied with free drinks. Yet despite these advantages, the history of the casino sector is littered with bad debts, bankruptcies and restructurings. Caesars Entertainment (US: CZR) has been at the heart of this industry for more than 80 years is. The firm's Las Vegas properties include Caesars, Harrah's, Bally's, Flamingo, Paris…