Key Investment Summary
There are reports that casino operators Eldorado Resorts (ERI) and Caesars Entertainment (CZR) are under initial discussions to explore merger possibilities. Noted activist investor Carl Icahn & Co. has increased his stake in CZR and is currently pushing for the sale of the company. CZR has provided limited financial information to ERI to commence the due diligence process. While there is no binding offer yet, we believe the transaction price to be at $10.50 per share, an upside of 25%. Also, Tilman Fertitta appears to be looking at