Monday, Sept. 4, 2006

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Harrah's makes $533 million bid for London-based casino company

By Lianne Elias

Harrah's Entertainment, Inc. has submitted a $533 million bid to purchase London Clubs International (LCI), a U.K. casino firm with operations worldwide. The Harrah's bid is supported by the LCI board.

Harrah's has a 28-day deadline to submit a formal offer in writing to LCI that includes dates for a first closing. If LCI shareholders accept the offer, an arrangement could be reached for Harrah's to purchase the firm within three or four months.

LCI shares skyrocketed in response to Harrah's bid, which offered 125 pence per share - a 27% premium on Wednesday's closing price. Stock market traders are expecting a higher rival bid, despite the fact that the contender Stanley Leisure, which was negotiating a possible merger with LCI in June, said all talks between itself and LCI had been terminated.

LCI operates a total of 11 casinos in the U.K. as well as several venues in Egypt and South Africa. It has five other projects under development around the world and a consulting stake in a venture in Lebanon.

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