Hedge Fund Tries to Crash a $4 Billion Casino Game
A U.S. investor is challenging Caesars’ already approved takeover of William Hill. If it succeeds, expect plenty of aftershocks.
Betting against Caesars.
Photo: Bloomberg
When a hedge fund arbitrageur wants to force a bidder to pay more for a takeover, the standard tactic is to rally opposition before shareholders have their say on the deal. Fearful of losing its prey, the aspiring buyer might chuck in a sweetener to secure enough support. Once shareholders have approved a transaction, the opportunity to resist the bid is usually past. That isn’t stopping a U.S. investment firm from having a go.
At the 11th hour, HBK Capital Management is pushing for a rerun of the shareholder vote on Caesars Entertainment Inc.’s 2.9 billion-pound ($4 billion) takeover of joint-venture partner William Hill Plc. The U.S. casino operator’s acquisition had been due to be rubber-stamped in a court hearing at the end of March after William Hill shareholders voted for it in November.