Billionaire activist investor Carl Icahn is keener on negotiating a compromised bid for Ceasars Entertainment  (CZR) - Get Report than the hotel and casino giant's board is, a report said.

The New York Post reported on Tuesday that Icahn believes Caesars board is demanding too much for the $6.2 billion company in its ongoing merger talks with rival casino operator Eldorado Resorts (ERI) - Get Report .

The owner of Bally's and Harrah's kicked off its auction two months ago with a price of $13 a share. Eldorado countered with a bid of $10.50 a share on June 6, which the board unanimously rejected.

Sources told the New York Post that Icahn, who owns a near-30% stake in Caesars with swaps, agrees that Eldorado's $10.50 offer is too low, but that he is willing to accept less than the board is currently seeking.

"They [Caesars] are getting close but are still trying to get a price that is right for all shareholders," one of the sources said.

Eldorado has been working on a deal with Caesars that could see the pair combine to create a gaming group worth more than $7.4 billion, following pressure from Icahn, who boosted his stake in the group earlier this year.

Icahn has three appointees on the eight-member board and also helped choose the CEO. Those four votes, along with Icahn's nearly one-third stake, could help seal a deal, even if Eldorado offers closer to $12 a share, the sources said.

Separately, Eldorado announced on Monday that it sold three casinos and other assets, including real estate, for $385 million. The proceeds could help Eldorado raise additional cash for its expected stock-and-cash offer for Caesars.

Shares of Caesars were up 0.3% at $9.88 in Tuesday trading; shares of Eldorado Resorts were down 0.17% at $53.09.