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NEWS FLASH: Harrahs Weighs Takeover AND Gets Barbary Coast From Boyd Gaming

By Chuckmonster on Monday, 2nd October 2006 10:57am
  » filed under Las Vegas  comments: 3

   

This is straight from the newswire:

Harrah's Entertainment Inc., the world's largest casino company, said Monday it has received a $15.05 billion offer for the company from private-equity firms Apollo Management and Texas Pacific Group.

The private-equity firms are offering $81 per share in cash, a 22 percent premium to Harrah's closing stock price on Friday on the New York Stock Exchange.

After the news, Harrah's shares surged $9.19, or 14 percent, to $75.62 in early trading on the New York Stock Exchange.

Harrah's said it has established a special committee of independent directors to review the offer and has retained UBS Securities LLC as an adviser.

Harrah's operates about 40 casinos, including Caesars Palace in Las Vegas, its namesake chain, Bally's, Horseshoe, Showboat and other brands throughout the country. The Las Vegas-based company beefed up its portfolio with last year's purchase of Caesars Entertainment Inc.

Also on Monday, Harrah's said it entered a deal with a unit of Boyd Gaming Corp. to exchange about 24 contiguous acres that Harrah's controls on the Las Vegas Strip for Boyd's Barbary Coast Hotel and Casino. Financial terms for that deal were not disclosed.

The real-estate transaction is expected to close in the first quarter of 2007, subject to customary closing conditions, including government approvals. Boyd said it expects to see a non-cash gain of about $280 million in the quarter the deal closes.



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Comments & Discussion:

 vespajet posted on Monday, 2nd October 2006 - 7:48 pm

I wonder when they'll close the Barbary Coast? I just booked a room there for late March.

 Beanbag posted on Tuesday, 3rd October 2006 - 2:53 pm

I hope the new owners keep the Flamingo open... I love that place!

 iluvcraps posted on Thursday, 5th October 2006 - 2:06 am

I hope they leave the Barbary Coast alone. It's one of the few places left that you can get the feel of old Las Vegas. Damn, I'm beginning to hate Harrah's. When will someone come along with a sense of history and nostalgia? Message to Harrah's...DON'T MESS WITH MY BARBARY COAST! As if they would listen. Mike Gaughan, where are you when your baby needs you?!?



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