UNLV Retrospective Theses & Dissertations 1-1-1995 Defending an empire with public relations: A case study of Caesars World Incorporated's strategies against corporate raiders Mercedes Warrick University of Nevada, Las Vegas Follow this and additional works at: https://digitalscholarship.unlv.edu/rtds Repository Citation Warrick, Mercedes, "Defending an empire with public relations: A case study of Caesars World Incorporated's strategies against corporate raiders" (1995). UNLV Retrospective Theses & Dissertations. 563. http://dx.doi.org/10.25669/ol78-75ow This Thesis is protected by copyright and/or related rights. It has been brought to you by Digital Scholarship@UNLV with permission from the rights-holder(s). You are free to use this Thesis in any way that is permitted by the copyright and related rights legislation that applies to your use. 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Contact UMI directly to order. UMI A Bell & Howell Information Company 300 North Zeeb Road. Ann Arbor. Ml 48106-1346 USA 313.'761-4700 800.'521-0600 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. DEFENDING AN EMPIRE WITH PUBLIC RELATIONS: A CASE STUDY OF CAESARS WORLD INCORPORATED’S STRATEGIES AGAINST CORPORATE RAIDERS by Mercedes Warrick A thesis submitted in partial fidfillment of the requirements for the degree of Master of Arts m Communication Studies Greenspun School of Communication Studies University of Nevada, Las Vegas December 1995 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. UMI Number: 1377664 Copyright 1995 by Warrick, Mercedes All rights reserved. UMI Microform 1377664 Copyright 1996, by UMI Company. All rights reserved. This microform edition is protected against unauthorized copying under Title 17, United States Code. UMI 300 North Zeeb Road Ann Arbor, MI 48103 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. The Thesis of Mercedes Warrick for the degree of Master of Arts in Communication Studies is approved. Chauperson Chapel, Ph.D. ^ ■ / / ^ ^ I________ Examining Co eraser, Anthony J. Ferri, Ph.D. Examining Committee Member, Richard J. Jensen, Ph.D. V Graduate Faculty Representative, Gaury B. Palmer, Ph.D. Director of Graduate Studies, Richard J. Jensen, Ph.D. Intermin Graduate College Dean, Cheryl L. Bowles, Ed.D University of Nevada, Las Vegas December 1995 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. © 1996 Mercedes Warrick AU Rights Reserved Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ABSTRACT This thesis is a case study of the public relations aspects of the 1987 and 1995 acquisition attempts of Caesars World Incorporated, a gaming and hotel company whose most prominent subsidiary is Caesars Palace in Las Vegas, Nevada. The purpose of the study was to explore what scholars and professionals had postulated about the role of public relations and determine whether these practical applications melded with their concepts. The study indicates that during these episodes public relations was an important component of the takeover process in that it helped align communication strategies with financial objectives. However, the functions performed were of a supportive nature and are not, as some scholars suggest, critical to the overall defensive scheme of the targeted company. m Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. TABLE OF CONTENTS ABSTRACT .............................................................................................................................. iii ACKNOWLEDGMENTS........................................................................................................xvii CHAPTER 1. INTRODUCTION .............................................................................................. 2 Methodology..................................................................................................................... 2 Scope of Limitations ....................................................................................................... 4 Review of Literature ....................................................................................................... 4 FubUc Relations’ R o le ..................................................................................................... 5 Community Relations ..........................................................................................8 Investor Relations................................................................................................ 8 Media Relations...................................................................................................9 CHAPTER 2. HISTORICAL CONTEXT & TERMINOLOGY OF CORPORATE TAKEOVERS.............................................................................................................. 16 Reasons for Corporate Restructuring...........................................................................18 The Takeover Process ...................................................................................................21 CHAPTERS: DISCUSSION ...................................................................................................27 Analysis of the 1987 T akeover .....................................................................................27 Examination of Caesars World Incorporated Press Releases...................................29 Caesars World Incorporated 1987 Takeover Offer/Announcement Stage 30 Caesars World Incorporated 1987 Takeover Action/Defense Stage .... 35 Caesars World Incorporated 1987 Takeover Outcome Stage ...................47 Analysis of the 1995 Caesars World Incorporated/ITT M erger.............................. 51 Examination of Newspaper Reporting............................................................ 52 CHAPTER 4: CONCLUSION .................................................................................................57 Theory and the Practical Application at Caesars........................................................59 Summary of Conclusions .............................................................................................. 69 Areas for Future Study ...................................................................................................72 APPENDIX I: COMPARISON OF 1987 STAKEHOLDER ACTIVITY ..........................73 APPENDIX II: SUMMARY OF MEDIA & CAESARS WORLD INC. POSITIONS . 76 IV Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. APPENDIX III: CAESARS WORLD INCORPORATED PRESS RELEASES ........... 91 BIBLIOGRAPHY.................................................................................................................... 115 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ACKNOWLEDGMENTS Love is patient, love is kind. It does not envy, it does not boast, it is not proud. It is not rude, it is not self-seeking, it is not easily angered, it keeps no record of wrongs. Love does not delight in evil but rejoices with the truth. It always protects, always trusts, always hopes, always perseveres. Love never fails. 1 Corinthians 13: 4 - 8 To: Debbie, Mark, Carl Wayne, Sandra, Marla, Charles, Tom, Bill, Katlii And especially. Gage, Jack and Thurban Thank you. I’ll wear my halo proudly. Love, Mercedes VI Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. CHAPTER 1 INTRODUCTION Tills thesis is a case study of the public relations efforts waged during