Harrah's Offered Large Buyout
Gambling Planet had this bit of news. It seems that Harrah's, the World's largest casino operator has received a fifteen BILLION dollar buy out offer from someone called Apollo Management and Texas Pacific Group.
Yes.. thats billion with a B. Its amazing how much like other megacorporations, Harrah's has built itself up by gobbling up the smaller outfits, until it now is so vast, it seems to be worth more than most countries.
The proposed deal, valued at $81 cash per share -- a 22% premium to Harrah's closing price on Friday -- would rank as one of the largest private equity buyouts on record.
The offer comes just as Harrah's puts the finishing touches on its plans to beef up its presence on the Las Vegas Strip, by acquiring Boyd Gaming Corp.'s Barbary Coast Hotel and Casino. After buying Caesars Entertainment last year, Harrah's now controls some 350 acres of prime strip property.
Harrah's shares rose 16.6 percent to $77.50 in early trading on the New York Stock Exchange.
The proposed deal is the latest sign of aggressive private equity investors jumping on attractive targets.
This July, an investor group including Bain Capital, Kohlberg, Kravis Roberts and Merrill Lynch struck a deal to buy Hospital operator HCA Inc. for about $21 billion plus debt.
Harrah's gave no indication that it would agree to a buyout deal. "The Special Committee has not determined that a transaction is in the best interests of Harrah's and its stockholders," it said in a statement.
It will be interesting to see if this deal goes through.
Heres how some others are reacting.
It would also be interesting to see how one would deilver 15 billion dollars....an aricraft carrier filled with fiftys perhaps?
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Posted by Russell Miner at October 4, 2006 11:30 AM