Harrah's Entertainment, the biggest casino operator in the world, which has already received a $15.5 billion buyout offer a month ago, has received a second offer, this time by Penn National Gaming and D.E. Shaw and others.
The first offer was proposed a month ago by the Apollo Management Group and the Texas Pacific Group, two private equity companies. Their original buyout offer was $15 billion, which they later raised to $15.5 billion or $83.50 a share.
Even though it is not yet known how much Penn National Gaming and D.E. Shaw are proposing, this latest offer could give Harrah's Entertainment more negotiating power with the Apollo Management Group and the Texas Pacific Group.
Private equity firms have begun showing interest in various businesses, of which gambling is the latest one to draw their attention. It is likely that this acquisition, either by the first bidders or the second, which will also include Harrah's $10 billion debt, will be the fourth-biggest buyout this year, following the purchase of Equity Office Property Trust, Clear Channel Communications and HCA
The Las Vegas-based Harrah's Entertainment was founded in 1937 by William F. Harrah as a small bingo parlor in Reno, Nevada and became the largest casino operator and owner in the world. It operates 40 casinos worldwide with yearly revenues of more than $7 billion.
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