Isle of Capri Casinos, Inc.
Robbins Arroyo LLP: Acquisition of Isle of Capri Casinos, Inc. (ISLE) by Eldorado Resorts, Inc. (ERI) May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of Isle of Capri Casinos, Inc. (NASDAQ: ISLE) by Eldorado Resorts, Inc. (NASDAQ: ERI). On September 19, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which Eldorado will acquire Isle of Capri. Under the terms of the agreement, Isle of Capri shareholders will receive $23.00 in cash or 1.638 shares of Eldorado common stock, the value of which is equivalent to $23.00 based on Eldorado’s 30-day average closing price, for each share of Isle of Capri common stock.
Is the Proposed Acquisition Best for Isle of Capri and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Isle of Capri is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
On August 30, 2016, Isle of Capri reported strong earnings results for its first quarter 2017. Isle of Capri reported net income of $10.3 million for the three months ended July 24, 2016, a 232.26% increase from the same period of the prior year. In commenting on these results, Isle of Capri Chief Executive Officer Eric Hausler remarked, “We continue to reinvigorate our properties through prudent capital investments to enhance the guest experience. During the quarter, we began renovating the Kansas City buffet and expect to start renovating the Black Hawk buffet in the second quarter, among other projects.…We continued to execute on a variety of other strategic initiatives which we believe enhance shareholder value. Most notably, on August 22 we announced that we have signed a definitive agreement to sell our Lake Charles property for $134.5 million.”
In light of these facts, Robbins Arroyo LLP is examining Isle of Capri’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Isle of Capri shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
Isle of Capri shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.