U.S. casino operator Caesars Entertainment is in talks to offer Carl Icahn a role in selecting its new CEO as part of an agreement that would also give the billionaire investor board seats, people familiar with the matter said on Sunday.
The negotiations come after Icahn disclosed a 9.8 percent stake in Caesars on Tuesday and said he could nominate a slate of directors to the company's board.
Icahn also asked Caesars to launch a process to explore a sale. The company responded on Wednesday that all the deals it had explored thus far undervalued it and did not create enough value for shareholders, but noted that it will continue to evaluate strategic alternatives presented to it.
Icahn has proposed Anthony Rodio, the CEO of privately held casino gaming company Affinity Gaming, as the successor to Mark Frissora, who is due to step down as Caesars CEO later this year, the sources said. Rodio was previously CEO of Tropicana Entertainment Inc, another casino and resort operator that Icahn sold last year to peer Eldorado Resorts Inc for $1.85 billion.