Tuesday, Dec. 19, 2006

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Harrah's strikes a takeover deal with private-equity companies

By Erin Warner

World Series of Poker owner and casino giant Harrah's Entertainment has accepted a private-equity buyout offer worth $16.7 million, sources say.

Several leading U.S. newspapers detail a $90-a-share takeover bid by Apollo Management Group and Texas Pacific Group that has been in the works since October, citing sources close to the negotiations.

The original acquisition proposal offered Harrah's - which owns the WSOP rights and 40 casinos under the Horseshoe, Harrah's and Caesars brand - $81 per share in cash.

The new agreement came late last week, after the Harrah's board of directors met in New York to discuss the offer and any other potential bids. Lawyers are currently working out the final details of takeover.

Representatives from Harrah's, Apollo Management Group and Texas Pacific aren't commenting on the deal, which gives the casino company a 36% premium over its September share price.

The world's third largest gaming company, Penn National, was also reportedly in the running to takeover Harrah's, but fell short with an $87-per-share offer.

The deal is the biggest buyout of a public casino by a private company and is the seventh-largest leveraged buyout in history.

Related Articles:

Harrah's Doesn't Announce Buyout Decision
Harrah's Reviewing Buyout Offers
Harrah's May Field Second Offer
Harrah's Receives Acquisition Proposal

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