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.