Reuters - Video

EDITION: U.S. | U.K. | IN

Breakingviews

Breakingviews: Curious Caesars

Wednesday, April 24, 2013 - 03:22

April 24 - Richard Beales and Jeff Goldfarb examine the U.S. casino group's latest restructuring experiment and wonder if regular investors can see through its complexity.

▲ Hide Transcript

View Transcript

This season as big US gambling company was subject to the giants that he will billion dollars LB back in 2006. Struggled ever since through the Great Recession. Tried IPO try to pay twice raised just a tiny bit of money. Latest effort to buy some time just looks like he really silicone believed -- have -- to -- -- that's. Pounds -- -- Wednesday -- financial engineering there's. It's seriously what they've done is about a year after they've they've went public -- of this tightening IPO they sold less than one and a half percent of the company to -- market. They're basically carving out a bunch of the assets. Setting up a separate company that's owned by holding company to which existing shareholders will get rights to bond not even quite a -- -- -- to -- you get it right you know to. -- answer given by aliens in this which it is gonna howls a couple of casinos and also. I guess -- -- the integral part of it is the online operations which you know haven't been Wisconsin promises. Of online gambling in the United States which is starting to inch forward a little bit to the states. It's saving the capital structure really right now for another for a period of time because. Civil and raises a little bit of money billions of some -- -- go to bank to seizes the highly leveraged thing that's -- -- fooled them that. Yeah -- a little bit let less than total little cash urgently look at -- this thing. Grace. -- -- a lot of people have looked out considerably less leverage of course and presumably it will then be a vehicle for growth of whatever variety could be -- the problem has been that. For these guys that sunk six billion dollars of equity into caesar's 2006. We have these -- NASA to visit. I ask all the Arabic god is being chewed up to pay for the interest on the Brett they've been waiting for the return of gambling Las Vegas tourism right. Online gambling all these things that were supposed to help. Get the company back on its feet just haven't been Cummings of the this is sort of like you'll put the next step in trying to prolong the life infrastructure that debt they've. If you -- you know they try to -- he ought to try all kinds of things that it's received -- investors and this is Romania and -- -- too politically Japanese and some other insiders -- visit there as of briefly but is not -- it's time that we know that the driver goes only to have to looks at what's at a regular. Investors thing clicking it does that mean at some of what happens in the market reacted very positively to us I guess because. There's this it's like a sigh of relief almost that obesity is a little bit of breathing room right. But it does feel like I mean this kind of structure with rights issues on a spin off. Is unusual I haven't seen it before you know when you see that kind of level of engineering in a situation that's already pretty bad -- I personally couldn't start to worry a little bit that now the one -- also that the parent company. And give us we'll keep an economic -- a pretty big economic stake in Verizon it spun off vehicle. So there is upside there than not you know and obviously being forced to divested assets and -- huge way. So that you have some value there I know just be I guess a little bit cautious. -- -- -- -- We'll keep on this seizes gamble experiment. With which to be proven. Think of it as and we level breaking views toward.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Breakingviews: Curious Caesars

Wednesday, April 24, 2013 - 03:22

Top News »

Investing 201 »

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

The better bond funds The better bond funds

Wed, Aug 07, 2013 - (2:40)

Best bargain in 40 years? European stocks Best bargain in 40 years? European stocks

Thu, Aug 01, 2013 - (2:24)

Invest like an activist Invest like an activist

Fri, Jul 26, 2013 - (2:49)

Money Clip »

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

“Stalking” your dream home - Money Clip “Stalking” your dream home - Money Clip

Wed, Mar 27, 2013 - (2:50)

3 hidden tax deductions - Money Clip 3 hidden tax deductions - Money Clip

Thu, Mar 21, 2013 - (1:33)

Moving Pictures »

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Thu, Jul 03, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)