Casino News

Bid for Harrah's becomes a real estate sellout

2006-10-06 09:00:00

Harrah's Entertainment could be part of an expensive buy-out operation, reaching a sale figure as much as $15 billion.

Harrah's new investments, including 350 acres of land around Las Vegas, have given the company more assets and bought attention to real estate value in the area.

One industry insider told Reuters that the bidding war land in the famed casino area, which included Aztar Corp and a private equity film, "is probably an indicator that Wall Street is beginning to see Las Vegas values in terms of real estate".

Before the billion-dollar-deal, Harrah's value had suffered with shareholders, with shares falling to a low of $75 a piece, compared with a May high of $83.

In one of the proposed takeover deals, a private-equity firm was offering to pay a compromised $81 a share.

For Harrah's to hold on to its assets, industry analyst Larry Klatzkin told Reuters it "would have to convince shareholders that it is in their best interest not to take this offer".

Mr Klatzkin added that the $81 offered per share does not take into consideration future growth of the company, with Harrah's looking to open a casino in London and other projects throughout the US.