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LAS VEGAS-Harrah’s Entertainment Inc. of Las Vegas and Keppel Land of Singapore have opted not to submit a proposal for an integrated resort on Sentosa Island in Singapore. Despite months of work on a proposal, the company issued a statement Friday saying “we determined it would not be possible to deliver a development on the scale we envisioned for Sentosa Island while meeting our objectives for this project.”

Bids for the Sentosa Island integrated resort are due Tuesday. Harrah’s did not return a phone call seeking further explanation, but stated that the company “remains committed to Signapore.”

Singapore legalized casino gaming last year, saying it would allow two casino resorts to be built. Earlier this year, the first license was awarded to Las Vegas Sands Corp., which plans to spend $3.6 billion on a resort scheduled to open in mid 2009. Harrah’s was one of four teams that applied for Singapore’s second casino license.

Harrah’s on Thursday said it was re-evaluating its Sentosa island proposal in light of the $81-per-share ($15-billion) buyout offer it received Monday from private equity firms Apollo Management and Texas Pacific Group. Prior to the offer, its shares were trading in the mid $60 range. Bear Stearns analyst Joseph Greff believes Harrah’s will go through with the sale if it can obtain a higher offer.

While shares of casino operators generally drifted lower on Friday, shares of Harrah’s gained $0.16 to close at $76.41. The day the buyout offer was announced, shares of Harrah’s traded as high as $80 before settling into the middle $70s.

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