Casino Group accepts bid take over bid.
Harrah's Entertainment, Inc. has accepted the all-cash transaction of $27.8 billion buyout offer from Apollo Management Group, L.P. and Texas Pacific Group (TPG). The bid was officially announced at the end of September 2006. Now, Harrah’s Entertainment, one of the biggest publicly traded Casino Company is being passed to private hands.
The deal also includes the assumption of approximately $10.7 billion of debt that Harrah's currently has which is likely to increase during the hand-over., but the deal still has to be voted on by Harrah’s Entertainment shareholders.
The CEO of Harrah’s has said this is a matter of changing ownership, not direction. The new owners support how Harrah’s Entertainment is running and plan to continue in the same way after the take-over.
Harrah’s Entertainment now has 25 days to look for a better bid offer. Penn National Gaming had offered $87 a share, beating the current bid of $81 a share from Apollo and Texas.