Harrah's Entertainment Receives Buyout Offer

Harrah’s Entertainment, America’s largest casino company and owners of the World Series of Poker brand, announced Monday that it received a $15 billion buyout offer from two private equity firms: Apollo Management and Texas Pacific Group.

It would be a bid of $81 per share, 22% higher than Harrah’s Friday close. The stock closed Monday at $75.68, a 14% jump.

Some analysts think that Harrah’s may look to field other bids now that this one is in, looking for an even better deal. If this deal does go through, Harrah’s will become a private company. The two equity firms will still have to go through a lengthy process of regulatory approval to run the casinos.

In other Harrah’s news, the company also made a land swap on Monday with Boyd Gaming. Boyd will give Harrah’s its Barbary Coast property in the middle of the Las Vegas Strip, and in return will receive land near its Stardust property.

Originally published October 3, 2006