Shares of Caesars Entertainment Corp. (CZR) shot up 12% on heavy volume in afternoon trade Wednesday, after reports that Tilman Fertitta, the billionaire owner of the Golden Nugget Casinos and the NBA's Houston Rockets, is interested in a merger deal. Volume ballooned to 64.2 million shares, compared with the full-day average of about 13.8 million shares. The rally puts the stock on track for the biggest one-day gain since September 2016. Reuters reported (https://www.reuters.com/article/us-caesars-m-a-fertitta-exclusive/exclusive-casino-mogul-fertitta-approaches-caesars-about-merger-sources-idUSKCN1MR27Z) that Fertitta approached Caesars about reverse merger deal in which Caesars would be the acquirer. CNBC reported (https://www.cnbc.com/2018/10/17/tilman-fertitta-and-advisors-offered-13-a-share-in-cash-and-stock-for-caesars---sources.html?&qsearchterm=caesars) that Fertitta wants to make a deal with Caesars that values the casino at $13 a share, or 43% above Tuesday's closing price of $9.09. Caesars declined to comment. The stock, which closed at a 20-month low on Monday, has still lost 12% over the past three months, while the S&P 500 has slipped 0.3%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 17, 2018 14:25 ET (18:25 GMT)
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