A forceful advocate for change, Carl Icahn is urging the disposal of Caesars Entertainment, even though a pact with the governing body has been reached.

The American gaming titan, Caesars Entertainment, has come to terms with Carl Icahn, which will see the influential investor back all proposed board selections at the company’s 2019 annual gathering of shareholders.

Nevertheless, Icahn, who was unveiled last week to have acquired a significant 9.8% interest in Caesars Entertainment, has once more called upon the board to pursue a consolidation or sale of the enterprise.

As part of the arrangement, three fresh directors have joined the Caesars Entertainment board. Keith Kozlar, the head of Icahn Enterprises, James Nielsen, a director at Icahn Enterprises, and Courtney Mather, a portfolio manager at Icahn Capital, have assumed their roles without delay.

Mather and Kozlar will serve until the 2019 shareholder meeting, at which point shareholders will decide whether to extend their terms, while Nielsen will seek re-election in 2020. The trio replaces three unidentified existing board members who will step down.

Acon will retain the authority to appoint an extra director to the board if Caesars Entertainment fails to choose a candidate to succeed outgoing CEO Mark Frissora within 45 days of the deal being finalized.

Caesars Entertainment Board Chairman James Hunt, commenting on the new appointments, said: “Our new members bring varied and pertinent experience, and we anticipate their contributions to our board as we continue to strive to generate more value for all stakeholders.”

He explained: “We have been engaged in a strategic process to create value since the completion of Caesars Entertainment’s restructuring, and we will continue this process with our new directors.” “On behalf of the entire board and Caesars Entertainment’s nearly 68,000 employees, I express gratitude to our departing director colleagues for their exceptional and tireless service to the company.”

In conjunction with the operator’s upcoming 2019 shareholder meeting, the Caesars Entertainment board will propose a series of enhancements to its governance procedures. Shareholders will be asked to vote on a proposal that would permit shareholders owning at least 15% of the shares to convene a special shareholder meeting. Another proposal, prohibiting the adoption of shareholder rights plans with a trigger threshold below 20% of outstanding shares, will also be presented.

The agreement with Acon was reached in the context of his push for the operator to merge or sell. Acon stated in a regulatory filing with the Securities and Exchange Commission last week that a sale would enhance shareholder value.

The document also indicated that Ikan anticipates Caesars to refrain from appointing a permanent chief executive, or extending the term of the current chief executive, Mark Frissora, until he engages with the board. American media widely reported that Ikan proposed Tony Rodio, the current leader of Affinity Gaming and former head of Tropicana Entertainment, to succeed Frissora.

After reaching an accord with the board, Ikan restated his belief that a sale is the most advantageous course of action for the company.

“I believe the most effective path forward for Caesars is to undertake a comprehensive strategic process to sell or merge the company to further develop its already robust regional presence, which would allow Caesars to continue to leverage the Caesars Rewards program, attracting a growing number of participants to the Caesars Las Vegas market,” Ikan explained.

“I anticipate this will make Caesars the most formidable competitor in Las Vegas, the gambling capital of the world,” he continued. “Caesars would be a prime opportunity for specific investors who have already expressed interest, and I am pleased that the board will explore these possibilities.

“In addition to strategic options, I believe Caesars should also prioritize leadership succession, disciplined capital allocation, enhancing operational performance, and optimizing real estate and other assets.”

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