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Shares of Caesars Entertainment (CZR - Get Report) rose Friday after the casino company struck a deal with Carl Icahn that will allow the activist investor and significant shareholder to add three directors to the board.

The stock was rising 4.12% to $8.98 a share in premarket trading. 

In the agreement, Keith Cozza, Courtney Mather and James Nelson will be added to the board. Their membership is effective immediately. Three existing board members will step down. Further, the agreement allows the Icahn Group the ability to add a fourth new member to the board if a new CEO isn't named within 45 days. 

"Our new colleagues bring diverse and relevant experience, and we look forward to them joining our board in our ongoing efforts to further enhance value for all shareholders," said James Hunt, chairman of Caesars. "Since the completion of Caesars' restructuring, we have been undergoing a strategic process to create value, and we will continue that process working with our new directors. 

Icahn has said he wants to either sell the company or enable access to resources that would allow it to grow.

"I believe the best path forward for Caesars requires a thorough strategic process to sell or merge the company to further develop its already strong regional presence, which will allow Caesars to continue to take advantage of the Caesars Rewards program bringing more and more players into Caesars' Vegas market," Icahn said. 

The stock has fallen 30% in the past year.