Caesars Entertainment is expected to reject the offer from Golden Nugget Casino owner Tillman Fertitta to merge the two companies, according to sources cited by the New York Post.
Earlier this month, Fertitta, the billionaire owner of Golden Nugget Casinos reportedly approached Caesars with a reverse merger deal which would see Caesars receive stocks in a private company owned by Fertitta for shares in Caesars, with Fertitta serving as chairman and CEO of the combined company.
However, two sources close to the matter revealed on Sunday that the board is expected to unanimously reject Fertitta’s deal as soon as this week, as they feel merger would “saddle the casino giant with too much debt.”
Caesars is still $9 billion in debt after emerging from bankruptcy a year ago, and Fertitta’s deal would add to the debt.
“That is certainly not attractive,” said the source.
Last week’s news of the merger offer boosted Caesar’s share price, rising 14 percent.