Harrah's Entertainment, the largest casino operator in the United States and one of the largest in the world, said it has received a takeover offer of $15 billion, which translates to $81 per share. The offer came from private equity firms, Apollo Management and Texas Pacific Group.
The company also has a long-term debt of about $10 billion, which means that the proposal has a value of $25 billion, making it one of the biggest buyouts in history.
This offer comes a time where gambling is on the spotlight, after the recent bill that accepted by the Senate, in which banks and credit card companies are forbidden from processing money and payments to online gambling companies. This bill, which will become law once President Bush signs it, basically finishes the online gambling industry in the U.S., which Harrah's and other casino operators might want, or wanted, to enter in the future.
Harrah's Entertainment owns or manages more than 40 casinos under the names Harrah's, Caesars and Horseshoe in Las Vegas and all over the world. Its shares closed at $75.80 on Monday, rising 14 percent or $9.37.
Harrah's owns or manages more than 40 casinos under the names Harrah's, Caesars and Horseshoe in Las Vegas and all over the world.
Whether or not Harrah's Entertainment will receive the offer remains to be seen.
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