Harrah's considers private equity offer

2006-10-02 17:45:00

The world's largest casino operator, Harrah's Entertainment, has revealed that it has received a takeover offer from a pair of equity firms.

The Las Vegas-based company claims to have received a $15 billion combined bid from Apollo Management and Texas Pacific.

Harrah's has formed a committee of non-management directors to consider the proposal, which values the firm at $81 per share, 22 per cent greater than Friday's closing share price.

"The Special Committee has not determined that a transaction is in the best interests of Harrah's and its stockholders," the company said in a statement.

Harrah's has been looking to invest in the burgeoning casinos market in the UK and recently bought Gaming Corporation's Barbary Coast Hotel and Casino in Las Vegas.

The company bought Caesars Entertainment last year and currently owns 350 acres of property on the Las Vegas strip.

Should the deal go ahead, it would be one of the largest ever purchases by a private equity group.