Casino News

Change in ownership for Harrah's Entertainment

2006-12-20 14:44:38

Apollo Management and Texas Pacific Group (TPG) are to buy Harrah's Casino, the world's largest casino operator.

Following two months of talks, Apollo and TPG have offered approximately $27.8 billion for the company, but also acquire $10.7 billion of debt.

Shareholders will be awarded $90 in cash for each Harrah's share and the company's board of directors has recommended that shareholders vote for the takeover.

This bid is up 35 per cent on the original offer of $81 per share offered back in October.

TPG's founding partner, David Bonderman, said: "Taking a long-term perspective, we believe we will be able to help Harrah's deliver on its growth strategy."

Gary Loveman, Harrah's chairman, chief executive officer and president was optimistic about the company's future prospects.

He commented on the deal: "This will be a change in ownership, not a change in direction."

However, the agreement states that for the next 25 days, other parties may still be approached for better offers.

Subject to stockholders' approval, the transfer could be completed by the beginning of 2008.


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