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 (617) 398-5600
or email him at Steven@blockesq.com.
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.
Steven@blockesq.com
(617) 398-5600
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SOURCE Block & Leviton LLP