Harrah’s Agrees To Buyout
Tuesday December 19, 2006
Harrah's Entertainment Inc., the world's largest casino company, has agreed to a $16.7 billion offer from two private equity groups. The agreement with Apollo Management Group and Texas Pacific Group came late last week but lawyers for both sides have been working out the details. The official announcement will be coming soon. The group agreed to pay $90 per share to stockholders.
Harrah's deal is the biggest to take a public casino company private and ranks as the seventh largest leveraged buyout in history, according to Thomson Financial. The largest ever was RJR Nabisco Inc.'s $25 billion acquisition by Kohlberg Kravis Roberts & Co. in 1998.
Comments
As a long time stock holder of Harrahs, and a gambler there, this saddens me. I do not want to have to sell my stock, and I believe that the new company will break up the company just when it got “good”, with adding Caesars and all it’s casinos. I fear my comps and my loyalties (mine to them and theirs to me) will go away. But I did see it coming and it’s out of my control. I guess I just have to take a wait and see attitude and in the meantime use the proceeds from the buyout to pay for a year of my daughter’s college.
i really feel just like the other person and i am also very sad.Never thought Harrahs would go that way, but i guess money talks
I’m also saddened by the news. It makes me wonder about who is really owning Las Vegas now.