Caesars Entertainment has appointed two new independent directors to its Board of Directors from Icahn Enterprises, which is keen on exploring strategic alternatives for the company’s “underappreciated” digital business.
Jesse Lynn currently serves as general counsel and Ted Papapostolou as chief financial officer of Icahn Enterprises, which is controlled by billionaire activist investor Carl Icahn, a current shareholder in Caesars.
The appoints remain subject to customary regulatory approvals and will expand Caesars’ Board to twelve members, ten of which are independent.
“I would like to welcome Jesse and Ted to the Board,” said Caesars Entertainment CEO Tom Reeg. “Jesse and Ted bring diverse and relevant experience that will assist the Board in maximizing value for all shareholders.”
Icahn Enterprises and certain of its affiliates have agreed to customary standstill, voting commitments, and other provisions.
The company has agreed not to conduct a proxy contest or engage in any solicitation of proxies regarding any matter, including the election of directors, with respect to the 2025 Annual Meeting.
Icahn once held a 25 per cent stake in Caesars but sold off his last shares in the company four years ago after helping complete its merger with Eldorado Resorts in July 2020. He revealed last year that he had again acquired stock in Caesars.
“I have great respect for Tom Reeg and the senior management team and what they have accomplished since the merger in 2020,” said Icahn. “We look forward to working with Tom and the Board to maximize value for all shareholders, including by exploring strategic alternatives for the company’s underappreciated digital business.”
Shares in Caesars Entertainment Inc (NASDAQ:CZR) gained 5.66 per cent to close at $29.12 per share in New York Wednesday.