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In the big merger announcement between Eldorado Resorts and Caesars Entertainment, there's been no mention of sports betting.
(Bloomberg) -- A group of creditors angling for control of PG&E Corp. is pushing to scuttle the bankrupt utility’s $31 billion restructuring plan.An ad hoc committee of unsecured lenders filed a motion to terminate the period of exclusivity that PG&E has to file a plan for emerging from Chapter 11, according to a court filing Tuesday. That period ends on Sept 26. While it is in effect, nobody else can submit a reorganization plan.The creditor group led by Pacific Investment Management Co., Elliott Management Corp. and Davidson Kempner Capital Management wants to end it now so they can put forth their own plan that would see the California power company emerge from bankruptcy by the end of 2019 or shortly after."The need to exit bankruptcy expeditiously is paramount," the creditors said in the filing in U.S. Bankruptcy Court for the Northern District of California. "It has been five months since the petition date, and a new wildfire season has already begun."A representative for PG&E didn’t respond to a request for comment.The request is the latest twist in the biggest utility bankruptcy in U.S. history. California politicians, creditors, activist investors, wildfire victims and others have all piled into the case since PG&E declared Chapter 11 in January to deal with an estimated $30 billion in damages tied to wildfires that its equipment ignited.The creditor group indicated last month that it would push to end the exclusivity period early, saying in a hearing that the company’s lengthy process to replace its board had slowed its exit from bankruptcy protection.Their reorganization plan would provide up to $30 billion in new money. It would include a trust of up to $18 billion to resolve past wildfire claims under certain condition as well as $4 billion from PG&E for future wildfire claims. It would also give employees, PG&E customers and the future wildfire fund the right to appoint one representative each to the company’s board."The ad hoc committee is willing to fund the reorganized company with fresh equity, which will restore strong investment grade credit metrics so PG&E can once again access low cost capital going forward for all of its necessary long-term infrastructure," the group said.They’re also proposing to give PG&E a new name: Golden State Power Light & Gas Co.In Chapter 11 cases, companies typically have an exclusive period of time to devise a reorganization plan. While its unusual for a court to terminate it, that happened when the company’s utility -- Pacific Gas & Electric Co. -- went through bankruptcy in the early 2000s.That case was overseen by U.S. Bankruptcy Judge Dennis Montali, who is also overseeing the current reorganization.In May, Montali said he ended the exclusivity in PG&E’s previous reorganization after a viable, competing proposal surfaced.The creditor group has asked him to consider approving their request in late July.To contact the reporters on this story: Scott Deveau in New York at email@example.com;Mark Chediak in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Liana Baker at email@example.com, ;Lynn Doan at firstname.lastname@example.org, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Recently, PG&E; (PCG) stock continued to fluctuate. The stock started the week on a lower note and lost 5.6% on June 24. Last week, the stock rose more than 24%.
Abercrombie (ANF) grapples with adverse impacts of foreign currency and higher operating expenses. Nevertheless, its cost-saving efforts, loyalty and marketing programs are encouraging.
One scoop to start: Smith & Nephew board members have discussed moving the company’s share listing to the US, partly to escape the UK’s stricter attitude towards executive pay. Read the exclusive from the FT’s Sarah Neville and DD’s Arash Massoudi. Some of the most famous performers of our time have graced the stages of Las Vegas, ready to entertain the millions of tourists who descend upon Sin City every year.
Wu Xiaohui was shopping in New York. “He didn’t really care — he’d point out the window and say: that one!” recalls a real estate executive who met Mr Wu, then chairman of China’s Anbang Insurance. Anbang, meanwhile, is under the control of the Chinese government and looking to unload US properties worth billions of dollars.
Caesars Entertainment (CZR) stock jumped over 15% Monday after news broke that the company agreed to merge with Eldorado Entertainment (ERI).
Utilities rose 0.3%, while the S&P; 500 rose 1.6% for the week ending June 21. So far in 2019, utility stocks have risen almost 15%, while broader markets have risen more than 17%.
An acquisitive Eldorado Resorts landed its biggest deal yet by agreeing Monday to buy the larger Caesars Entertainment.
(Bloomberg) -- In the casino business, the minnow is swallowing the whale.Eldorado Resorts Inc.’s $8.58 billion acquisition of Caesars Entertainment Corp. means an underdog from Reno, Nevada -- a town long in the shadow of Las Vegas -- will become the largest owner of casinos in the U.S.In the deal, announced Monday, Caesars shareholders will receive about $12.75 a share, including $8.40 in cash. That’s a 28% premium to the casino chain’s close on Friday.While the combined company will retain the Caesars name, there’s no mistaking who’s buying whom in this transaction: Eldorado, with a market value of less than $4 billion, is clinching the giant from Las Vegas and its flagship Caesars Palace.Eldorado’s quick ascent to the top of the industry benefited from a campaign by activist billionaire Carl Icahn, Caesars’ biggest shareholder, who pushed for a sale in recent months. The Reno company is buying an ailing Caesars, still coping with the fallout of a 2008 leveraged buyout that left it with a mountain of debt. But it wasn’t the only suitor: Golden Nugget owner Tilman Fertitta proposed merging his restaurant and casino empire with Caesars last year.Reno RootsEldorado dates back to a single casino opened in Reno in 1973 by Donald Carano, a lawyer who died in 2017. The town, which calls itself “The Biggest Little City in the World,” has always been the second fiddle of Nevada’s gambling industry.The business has grown exponentially in recent years under the direction of Tom Reeg, who is now chief executive officer and will lead the combined Eldorado-Caesars along with Chairman Gary Carano and the rest of Eldorado’s management. Among its purchases, Eldorado acquired MTR Gaming Group and Isle of Capri Casinos, and last year added Tropicana Entertainment, which was controlled by Icahn.“Eldorado is 5 for 5 in the merger department and everyone time they announce synergies, they find more,” said Chad Beynon, an analyst at Macquarie.Eldorado, which still counts the founding Carano family as its largest shareholder, had 26 casinos in 12 states. Combined with Caesars, it will boast 60 owned, operated and managed casino–resorts across 16 states -- including chains like Harrah’s. Tellingly, the enlarged company will be headquartered in Reno.Rough RoadLike Caesars, Eldorado has had its ups and downs. The Reno market was pummeled by competition from Indian casinos in Northern California and the expansion of gambling across the country. In 2012, the company put one of its subsidiaries -- the Silver Legacy Resort Casino, a joint venture with MGM Resorts International -- into bankruptcy.For a time, it seemed the Carano family would be more likely to have long-term wealth from their winery Ferrari-Carano Vineyards in Healdsburg, California. Then the family set on a strategy of diversifying its casino business through acquisitions.Reeg, a former banker who’s now 47, joined the board of directors in 2007. With the demeanor of an accountant more than a casino boss, Reeg has built a reputation for cutting costs and boosting profits. He consolidated functions at resorts the company acquired and cut back on the promotions that often lead to vicious competition in small markets.Negotiating SkillsEldorado also boosted results at its properties by adding additional hotel and dining options, such as the Row, a food court in Reno, and a hotel near its property in Columbus, Ohio. Reeg has proven himself a shrewd negotiator outside of acquisitions, cutting deals with William Hill Plc and the Stars Group in the emerging market of sports betting. He’s also teamed up with Maryland’s Cordish Cos. to develop the area around a horse track in Pompano, Florida.Still, Reeg will have his work cut out for him with Caesars, which is competing with newer resorts in places like Atlantic City, New Jersey. Apollo Global Management LLC and TPG, the two private equity giants in the 2008 leveraged buyout of Caesars, took a bath on the company before exiting the investment several months ago. Their departure allowed Icahn to swoop in.Caesars casinos are likely to contend with even steeper competition in states such Illinois, which recently authorized six new casinos -- including one in downtown Chicago.Eldorado and Caesars said Monday that they have identified benefits of $500 million by combining the businesses, and expect the deal to boost cash flow immediately. A parallel agreement will see VICI Properties Inc. acquire some of the companies’ real estate, generating $3.2 billion of proceeds to help pay down debt.“As with our past transactions, we have a detailed plan for significant synergy realization,” Reeg said in a statement.To contact the reporter on this story: Christopher Palmeri in Los Angeles at email@example.comTo contact the editors responsible for this story: Nick Turner at firstname.lastname@example.org, Cécile Daurat, Kevin MillerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- In M&A, much like in blackjack, players have to be wary of a stiff hand – bid too high and it could be a bust. That’s especially true when the dealer is Carl Icahn. Eldorado Resorts Inc., a casino operator, is being punished by shareholders for its acquisition announced Monday of Caesars Entertainment Corp. Eldorado’s stock tumbled more than 8% percent.The company agreed to buy its Las Vegas-based rival for $17.3 billion, about half of which is made up of debt. It’s the biggest casino deal since Caesars’ ill-fated leveraged buyout by TPG and Apollo Management in 2008 (which came together just before the financial crisis took hold and later led Caesars into bankruptcy). Eldorado also struck a parallel $3.2 billion deal with VICI Properties Inc. for certain related real estate assets, such as the Harrah’s Resort in Atlantic City. Icahn, Caesars’ top shareholder, had been pushing for a sale of the company and helped install industry veteran Tony Rodio as its CEO in April. The situation happens to bear close resemblance to another deal Eldorado did last year, when it acquired Tropicana Entertainment from Icahn Enterprises LP, the billionaire’s holding company, for $1.85 billion. Rodio was CEO of Tropicana, too. With the Caesars transaction, Reno, Nevada-based Eldorado is expanding its portfolio to 60 casino resorts and gaming facilities in 16 states. It had just two as of 2014, according to Bloomberg Intelligence. There are the benefits of getting bigger, but at the same time, Eldorado’s calculations leave little room for error. Its offer for Caesars is a combination of cash and stock that amounts to $12.75 a share, a significant bump from its earlier $10.50-a-share bid that was reported this month by the New York Post, citing an unnamed source. On average, analysts pegged the stand-alone value of Caesars shares at $11 apiece. The final takeover price is a 35% premium to its average closing level over the past 20 trading sessions, though Icahn himself notes that it’s 51% higher than Caesars’ stock price before he won three seats on the board in March and began making his sale push. Icahn built his stake when the stock was trading below $9. Eldorado estimates $500 million of cost savings from the deal, a figure that has analysts from Sanford C. Bernstein skeptical. “While Eldorado has been successful in rolling up gaming assets across the U.S., this acquisition of a whale operator is at a completely different level,” they wrote in a report published Monday. The synergies estimate is also double what Brian Egger, an analyst for Bloomberg Intelligence, had assumed.The suitor beat out Golden Nugget owner Tilman Fertitta, but now it needs to prove to investors that it was worth it. As for Icahn, once again, the house wins. To contact the author of this story: Tara Lachapelle at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering deals, Berkshire Hathaway Inc., media and telecommunications. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
The key catalyst behind the proposal is the crisis faced by utility operator PG&E Corp. (PCG) with $30 billion in liabilities from wildfires.
HUYA Inc. (NYSE:HUYA) shareholders should be happy to see the share price up 20% in the last month. But that doesn't...
HUYA Inc. (NYSE:HUYA) shareholders should be happy to see the share price up 20% in the last month. But in truth the...
Eldorado Resorts (ELR) has agreed to buy Caesars (CZR) for $8.6 billion, and a bipartisan bill in the Senate holds Big Tech accountable for monetized user data.
(Bloomberg) -- Eldorado Resorts Inc. is buying Caesars Entertainment Corp. for about $8.58 billion in a deal backed by activist billionaire Carl Icahn that will create the largest U.S. gaming operator.The agreed equity value of $12.75 a share -- in a mix of cash and Eldorado stock -- represents a premium of about 28% to Caesars’s Friday closing price. Including debt, the deal is worth approximately $17.3 billion, the companies said in a statement.Caesars shares rose 15% to $11.48 as of 9:32 a.m. in New York. Eldorado dropped 7.2%.Casino and hotel operator Caesars had been pushed to consider a sale by Icahn, its biggest shareholder according to data compiled by Bloomberg. Earlier discussions had focused on a deal that would have valued Caesars at $11 a share, a person familiar with those talks had said.Caesars, whose properties include the flagship Caesars Palace and the Harrah’s chain, is still coping with the fallout of a 2008 leveraged buyout led by Apollo Global Management LLC and TPG that left it with a mountain of debt. The company completed a bankruptcy of its largest unit two years ago that brought in new board members and shareholders, including distressed-debt investors. Apollo and TPG have sold their shares.Property DealEldorado and Caesars said they have identified benefits of $500 million by creating a company with 60 owned, operated and managed casino–resorts across 16 states, and expect the deal to boost cash flow immediately. A parallel agreement will see VICI Properties Inc. acquire some of the companies’ real estate, generating $3.2 billion of proceeds to help pay down debt.Eldorado’s management team will lead the new company, which will continue to operate under the Caesars name and to trade on the Nasdaq Global Select Market.“We intend to allocate the significant free cash flow from the combined company to reduce leverage while investing to improve the customer experience across the platform,” said Eldorado’s Chief Executive Officer Tom Reeg.Before Monday, Eldorado shares had risen 17% in the past year, compared with a 12% decline in Caesars’s stock. The S&P Supercomposite Casinos & Gaming Index, which tracks the performance of nine stocks including the two companies, slumped about 20%.“While I criticized the Caesars Board when I took a major position several months ago, 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,” Icahn said in a statement.Eldorado, which had a market value of about $4 billion as of Friday, wasn’t Caesars’s only suitor. Golden Nugget owner Tilman Fertitta proposed merging his restaurant and casino empire with Caesars last year, but was rejected by Caesars.Eldorado, which dates back to a single casino opened in Reno, Nevada, in 1973, has grown exponentially in recent years under the direction of Tom Reeg, who is now chief executive officer. The company in recent years acquired MTR Gaming Group Inc. and Isle of Capri Casinos, and last year added Tropicana Entertainment Inc., which was controlled by Icahn.The business, which still counts the founding Carano family as its largest shareholder, now has 26 casinos in 12 states.(Updates shares in third paragraph.)\--With assistance from Hailey Waller.To contact the reporters on this story: Scott Deveau in New York at email@example.com;Christopher Palmeri in Los Angeles at firstname.lastname@example.org;Liana Baker in New York at email@example.comTo contact the editors responsible for this story: Nick Turner at firstname.lastname@example.org, ;Liana Baker at email@example.com, ;Rebecca Penty at firstname.lastname@example.org, Thomas PfeifferFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.