Report: Borgata, Caesars Owners Considering a Merger
The New York Post is reporting that MGM and Caesars Entertainment are exploring a merger.
MGM Resorts International is the owner of Borgata Hotel, Casino and Spa. Caesars operates three Atlantic City casinos.
The paper quotes sources close to the situation as saying MGM has hired investment bank Morgan Stanley and law firm Weil, Gotshal & Manges to look in to the merger possibility.
According to the New York Post...
Activist hedge funds, which together own about a 25 percent chunk of underperforming Caesars, have been pushing for an MGM deal, sources said. Caesars shares are off 25 percent year to date, while MGM is down 15 percent.
Between Borgata and the three Caesars properties; Bally's, Harrah's and Caesars, the joint company would operate about half of the hotel rooms in Atlantic City, which could be a concern to casino regulators.
The New York Post says that MGM and Caesars declined to comment on the merger possibility.
SOURCE: New York Post