Casino campany might get bought out

This one is for Evkoz.


from Yahoo.com:

Harrah’s gets $15 billion buyout bid

LAS VEGAS – Harrah’s Entertainment Inc., the world’s largest casino company, said Monday it has received a $15.05 billion offer for the company from private-equity firms Apollo Management and Texas Pacific Group.

The private-equity firms are offering $81 per share in cash, a 22 percent premium to Harrah’s closing stock price on Friday on the
New York Stock Exchange.

After the news, Harrah’s shares surged $9.19, or 14 percent, to $75.62 in early trading on the New York Stock Exchange.

Harrah’s said it has established a special committee of independent directors to review the offer and has retained UBS Securities LLC as an adviser.

Harrah’s operates about 40 casinos, including Caesar’s Palace in Las Vegas, its namesake chain, Bally’s, Horseshoe, Showboat and other brands throughout the country. The Las Vegas-based company beefed up its portfolio with last year’s purchase of Caesars Entertainment Inc.

Also on Monday, Harrah’s said it entered a deal with a unit of Boyd Gaming Corp. to exchange about 24 contiguous acres that Harrah’s controls on the Las Vegas Strip for Boyd’s Barbary Coast Hotel and Casino. Financial terms for that deal were not disclosed.

The real-estate transaction is expected to close in the first quarter of 2007, subject to customary closing conditions, including government approvals. Boyd said it expects to see a non-cash gain of about $280 million in the quarter the deal closes.Harrah’s gets $15 billion buyout bid

LAS VEGAS – Harrah’s Entertainment Inc., the world’s largest casino company, said Monday it has received a $15.05 billion offer for the company from private-equity firms Apollo Management and Texas Pacific Group.

The private-equity firms are offering $81 per share in cash, a 22 percent premium to Harrah’s closing stock price on Friday on the
New York Stock Exchange.

After the news, Harrah’s shares surged $9.19, or 14 percent, to $75.62 in early trading on the New York Stock Exchange.

Harrah’s said it has established a special committee of independent directors to review the offer and has retained UBS Securities LLC as an adviser.

Harrah’s operates about 40 casinos, including Caesar’s Palace in Las Vegas, its namesake chain, Bally’s, Horseshoe, Showboat and other brands throughout the country. The Las Vegas-based company beefed up its portfolio with last year’s purchase of Caesars Entertainment Inc.

Also on Monday, Harrah’s said it entered a deal with a unit of Boyd Gaming Corp. to exchange about 24 contiguous acres that Harrah’s controls on the Las Vegas Strip for Boyd’s Barbary Coast Hotel and Casino. Financial terms for that deal were not disclosed.

The real-estate transaction is expected to close in the first quarter of 2007, subject to customary closing conditions, including government approvals. Boyd said it expects to see a non-cash gain of about $280 million in the quarter the deal closes.

For a casino company that owns 40 casinos 15 billion seems like nothing. I mean I’ve seen bigger bids, but that just seems like petty cash when it comes to the casino industry…maybe that’s just me, someone can help me out if that’s the case.

–Socram

2 thoughts on “Casino campany might get bought out

  1. It’s funny, I just read this article on Yahoo, went to your blog and saw this! Thanks for thinking of me. I figured, I had some extra cash, I mine as well buy out Harrahs! Need a room? ~Evkoz

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