Harrah's weighing options

15 Dec 2006

LAS VEGAS, Nevada – Casino giant Harrah's Entertainment ended a meeting of a special committee of its board of directors Thursday without announcing a decision on whether it will back a multibillion dollar buyout offer, according to a person close to the matter.

The special committee, comprised of all 11 members of the board except chairman and chief executive Gary Loveman, had been meeting in New York since Wednesday to weigh any offers it received by the end of Tuesday.

Among the offers was one from private equity firms Apollo Management Group and Texas Pacific Group to take the company private for more than $83.50 per share, or more than $15.5 billion, another person close to the matter said.

Another option being considered was a plan to recapitalize the company by borrowing money to give shareholders a large dividend or to repurchase shares to boost shareholder value, the person said.

Both people asked not to be named because of the sensitivity of the negotiations.

Penn National Gaming, a casino and horse racing track operator based in Wyomissing, Pa., reportedly is interested in bidding for Harrah's. Sources said the company was prepared to offer $88.50 a share for Harrah's, a deal worth more than $16.5 billion.

A third person close to the matter who also spoke on the condition of anonymity said no decision was expected to be announced Thursday evening.

Harrah's, the world's largest casino company by revenue, has not confirmed any information about the bids since making an announcement Oct. 2 that private equity firms Apollo and Texas Pacific had offered $81 per share for the company. Later that month, the group raised its bid to $83.50 a share, one source said.

The latest bid by the private equity group topped the previous one, the source said, without giving an exact figure.

The proposed deal, even at the original bid price, would make it one of the largest leveraged buyouts in history.

Harrah's operates 39 casinos nationwide, including Caesars Palace, Bally's and Paris on the Strip, and Caesars and Harrah's in Atlantic City, New Jersey. It also has interests in Casino Windsor in Canada and Conrad Punta del Este in Uruguay.

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	Harrah's weighing options 15 Dec 2006 LAS VEGAS, Nevada – Casino giant Harrah's Entertainment ended a meeting of a special committee of its board of directors Thursday without announcing a decision on whether it will back a multibillion dollar buyout offer, according to a person close to the matter. The special committee, comprised of all 11 members of the board except chairman and chief executive Gary Loveman, had been meeting in New York since Wednesday to weigh any offers it received by the end of Tuesday. Among the offers was one from private equity firms Apollo Management Group and Texas Pacific Group to take the company private for more than $83.50 per share, or more than $15.5 billion, another person close to the matter said. Another option being considered was a plan to recapitalize the company by borrowing money to give shareholders a large dividend or to repurchase shares to boost shareholder value, the person said. Both people asked not to be named because of the sensitivity of the negotiations. Penn National Gaming, a casino and horse racing track operator based in Wyomissing, Pa., reportedly is interested in bidding for Harrah's. Sources said the company was prepared to offer $88.50 a share for Harrah's, a deal worth more than $16.5 billion. A third person close to the matter who also spoke on the condition of anonymity said no decision was expected to be announced Thursday evening. Harrah's, the world's largest casino company by revenue, has not confirmed any information about the bids since making an announcement Oct. 2 that private equity firms Apollo and Texas Pacific had offered $81 per share for the company. Later that month, the group raised its bid to $83.50 a share, one source said. The latest bid by the private equity group topped the previous one, the source said, without giving an exact figure. The proposed deal, even at the original bid price, would make it one of the largest leveraged buyouts in history. Harrah's operates 39 casinos nationwide, including Caesars Palace, Bally's and Paris on the Strip, and Caesars and Harrah's in Atlantic City, New Jersey. It also has interests in Casino Windsor in Canada and Conrad Punta del Este in Uruguay. Copyright GamingWire. All rights reserved.