Carl Icahn builds stake in Caesars Entertainment: Sources

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Billionaire activist investor Carl Icahn is building a stake in casino company Caesars Entertainment, sources familiar said.

The size of Icahn’s stake is not immediately known.

Caesars shares jumped 6.8 percent on Friday. The shares dropped 46 percent last year.

Last year, another billionaire proposed to make a deal for shares of the casino operator. Tilman Fertitta and advisors offered $13 a share in cash and stock, CNBC reported in October. Fertitta owns the Houston Rockets basketball team and the hospitality company Landry’s, which includes Golden Nugget Casinos, Morton’s steakhouses and the Rainforest Café.

Fertitta would have been chairman and CEO of the combined company, sources told CNBC at the time.

Casinos have become hot investment lately. The activist hedge fund Starboard Value has reportedly been building a modest stake in MGM Resorts International. MGM is on a cost-cutting initiative to boost profit by $300 million annually.

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