Caesars and Eldorado commence merger negotiations

Caesars Entertainment and Eldorado Resorts have reportedly entered into merger talks.

Various media sources are reporting that Eldorado is carrying out due diligence after receiving confidential financial records from Caesars.

A shake-up of this nature was expected after Carl Icahn purchased a 17.75 per cent stake in Caesars.

SEE ALSO: BEST US CASINO SITES

The investor already has three seats on the board and is close to securing a fourth, so his influence within the company is considerable.

Eldorado is not the only casino operator rumoured to be in the mix for a merger with Caesars.

There were whispers of a potential deal with MGM Resorts last year, while Golden Nugget reportedly approached Caesars with an offer for a reverse buyout.