LAS VEGAS (AP) — Caesars will replace three members to its board with directors chosen by billionaire Carl Icahn, who is seeking fundamental changes at the casino and resort.
Icahn recently revealed a 10 percent stake and last week the Las Vegas company acknowledged it had been in talks with the activist investor about its leadership. Icahn also said in a regulatory filing that he wants to put the company on the sales block.
The casino said Friday that Keith Cozza, Courtney Mather and James Nelson of the Icahn Group will immediately take the place of three existing board members. Icahn wants a say in who takes over when CEO Mark Frissora, who guided Caesars through its more than two-year-long bankruptcy reorganization, steps down.
Frissora was scheduled to leave last month, but that departure was pushed back to the end of April. Icahn said he doesn't want Frissora's tenure extended again.
The Icahn Group, as part of the agreement announced Friday, has the right to appoint a fourth director if Caesars fails to appoint a CEO that's acceptable to the new board members within 45 days.
Icahn said that Caesars has underperformed rivals. Its share price certainly has lagged other major casinos, falling 30 percent over the past 12 months.
Shares of Caesars Entertainment Corp. rose 2 percent before the opening bell.