Block & Leviton LLP Investigates Board of Directors of Caesars Acquisition Co. for Possible Breaches of Fiduciary Duty in Con...

BOSTON, Dec. 22, 2014 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, is investigating possible breaches of fiduciary duty by the Board of Directors of Caesars Acquisition Co. ("CAC" or the "Company") (NASDAQ:  CACQ) concerning the proposed acquisition of the Company by its affiliate Caesars Entertainment Corp. ("Caesars Entertainment" or the "Buyer") (NASDAQ:  CZR).

Under the terms of the proposed transaction, shareholders of the Company will receive 0.664 shares of the Buyer for each share of the Company's stock they own—which equates to a negative 5% premium based on the closing prices of CAC and Caesars Entertainment on Friday, December 19, 2014, the last day of trading prior to the announcement of the proposed transaction. Early reports state that the proposed transaction was entered into in order to "better position" the Buyer—which has been rumored to be considering bankruptcy—"to restructure the $18.4 billion debt load of its largest unit." The proposed transaction does not appear to benefit shareholders of the Company.  Through another affiliate, Hamlet LLC, Caesars Entertainment exercises significant control over CAC, and there are concerns over the fairness of the proposed transaction to unaffiliated, minority shareholders.

Block & Leviton's investigation seeks to determine, among other things, whether directors of the Company breached their fiduciary duties by failing to maximize shareholder value in the potential acquisition and the entire fairness of the process by which the directors considered and approved the transaction.  The investigation is also seeking to uncover whether the Buyer aided and abetted such potential violations.

If you are a shareholder of Caesars Acquisition Co. and have questions about your legal rights, or if you have information relevant to this investigation, please contact attorney Steven P. Harte, at [phone] or email him at [e-mail].

Block & Leviton is a Boston-based law firm representing investors nationwide for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 70 years. This notice may constitute attorney advertising.

Contact:
BLOCK & LEVITON LLP
Steven P. Harte, Esq.
[e-mail]
[phone]

 

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SOURCE Block & Leviton LLP

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