Wohl & Fruchter LLP has resumed its inquiry into the proposed $17.6 billion acquisition of Caesars Entertainment by Fertitta Entertainment, following a regulatory filing that revealed a higher bid from the Icahn Group.
The current offer values Caesars at $31 per share in cash. However, a definitive proxy statement filed by Caesars with the U.S. Securities and Exchange Commission on August 25 indicated that the Icahn Group had made a cash offer of $34 per share during the go-shop phase.
According to Wohl & Fruchter, the proxy statement included insights into the negotiations between the Caesars board and the Icahn Group after the latter's $34 cash bid was submitted.
The board of Caesars is in favor of the Fertitta offer and has recommended that shareholders approve the transaction in a vote set for September 22.
The law firm initially initiated its investigation due to concerns that the $31-per-share offer fell short of the price expectations set by several Wall Street analysts prior to the announcement. Some analysts had predicted that Caesars could achieve a takeover price in the mid- to high-$30 range.
Joshua Fruchter, a founding partner at Wohl & Fruchter, stated, “We are looking into whether the Caesars board acted in the best interests of its shareholders when recommending the sale. This includes evaluating if the sale price is fair and if all relevant information about the transaction has been disclosed. We urge Caesars shareholders to reach out to our firm if they have any concerns.”
While the firm has not confirmed plans for class action litigation, it has encouraged shareholders with questions to get in touch.