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Caesars Entertainment Corp. has sold 10.3 million shares of its common stock to a Swiss banking firm for $200 million, resulting in a sharp 12 percent decline in its share price Tuesday (October 15). This represents the biggest decline of the year so far.
The stock began trading without rights to participate in an IPO of the company’s online gambling unit. Anyone purchasing the stock as of the 15th would not enjoy rights to the new unit. Those already owning stocks in Caesars will be able to purchase Caesars Acquisition Co. stock.
“You can sell the stock today and settle and still keep” the subscription rights, John Kempf, an analyst at RBC Capital Markets in New York, said in an e-mail to Bloomberg News Tuesday.
Owners of Caesars shares have benefitted over the year nonetheless as the company’s shares have more than tripled.
- Aaron Goldstein, Gambling911.com
