Harrah's Entertainment Accepts Buyout Offer
LAS VEGAS -- Harrah's Entertainment has accepted a $16.7 billion buyout from Apollo Management Group and Texas Pacific Group according to reports from The Associated Press.
The deal values Harrah's
Gary Loveman, CEO of Harrah's Entertainment at $90 a share and marks the largest transition of a publicly held casino company into private hands.
Harrah's reportedly reached an agreement with the two private equity firms last week but lawyers continue to hammer out the details. All parties involved have declined comment.
The $90 per share offer is a 36 percent premium over Harrah's share price on October 2nd when Apollo and Texas Pacific first expressed interest.
Penn National Gaming also competed for the purchase with a $87 per share offer.
Harrah's received $4.7 billion in revenue in the first half of 2006 making it the largest casino operator in the world in terms of revenue. The company operates 35 casinos in the U.S. as well as one in Canada and one in Uruguay.
Shares in Harrah's were trading around $82 on Tuesday.
Las Vegas, NV 89119
Fax: (901) 762-8637
Website: www.caesars.com
| Caesars Entertainment owns or manages through various subsidiaries more than 40 casinos in three countries, primarily under the Harrah's, Caesars and Horseshoe brand names. Caesars also owns the World Series of PokerŪ and the London Clubs International family of casinos. |