Report: Golden Nugget Seeks to Merge with Caesars

LAS VEGAS—The owner of the Golden Nugget casinos is seeking to merge with Caesars Entertainment Corp., according to reports.

Billionaire Tilman Fertitta wants to make a cash and stock deal with Caesars Entertainment that values the casino at $13 per share, sources told CNBC. Sources indicate that Fertitta is pitching a reversal merger scenario in which Caesars would be the acquirer and Apollo and TPG would still hold interests in the combined casino giant.

A merger could be a boon for Fertitta, who borrowed heavily to buy the Houston Rockets basketball team for $2.2 billion last year, greatly increase the casino properties under his control while folding his debt into a larger company, according to Bloomberg.

Shares of Caesars Entertainment increased more than 14% to $10.40 Wednesday.

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