Jul. 8 at 12:40 AM
Jefferies Financial Group is reportedly sounding out investors to raise about
$5 billion in debt financing to support Carl Icahn in a potential rival bid for Caesars Entertainment, according to Bloomberg. The financing effort comes during Caesars' "go-shop" period, which runs through July 11, allowing the casino operator to solicit or evaluate competing offers after agreeing in May to Tilman Fertitta's
$5.7 billion all-cash acquisition at
$31 per share.
According to the report, Icahn is considering an offer of
$33 per share, topping Fertitta's accepted bid. Jefferies has reportedly been approaching existing lenders to gauge support for the transaction, while Icahn's proposal could also involve separating certain Caesars assets from existing creditors through contractual provisions that permit transfers to a subsidiary. The structure remains under discussion and no final decision has been made.
$JEF $CZR