Harrahs to Buy Caesers Entertainment

Harrah's Entertainment Inc. is near an agreement to acquire Caesars Entertainment Inc. for about $10 billion including debt, aiming to create a dominant U.S. gambling concern, a source close to the situation said on Wednesday. The talks are at a sensitive stage, but the source said the chances of the deal being struck in the next day or two were very high and that there were no apparent stumbling blocks. Caesars currently has a market value of about $4.5 billion in addition to another $4.5 billion in long-term debt. The negotiations, if successful, would create the world's largest gambling company with $8.8 billion in annual revenue and a sizable presence in nearly every major legalized gambling market around the country. It also would offer a sound rejoinder to rival MGM Mirage, which last month agreed to acquire Mandalay Resort Group for $4.8 billion in an effort to create a dominant casino company on the Las Vegas strip. Read More.