Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LAS VEGAS-Apollo Management and Texas Pacific Group have upped the ante in their bid for Harrah’s Entertainment Inc. Information circulated over the weekend and swelled on Monday that the pair could buyout the gaming company for nearly $17 billion. Sources have the latest offering at $90 a share–about $16.7 billion.

In October, GlobeSt.com reported that private-equity firms Apollo Management and Texas Pacific Group had made a bid for Harrah’s at roughly $81 per share. Then, earlier this month, we reported that the bid had risen to $83.50 a share, or about $15.5 billion. However, Penn National Gaming, a race track and casino operator, made the buy a bidding war, with a cash-and-stock offer of $87 per share, or $71 in cash and $16 from stock.

This latest bid caused a rush on Harrah’s stock Monday as shares jumped $2.43, up to $81.93, a 3.1% hike. Harrah’s is the nation’s largest gaming operation. Among its portfolio are Caesars Palace and Bally’s in Las Vegas.

If the deal were to go through, it would fly in the face of early prognostications concerning the acquisition. In early October, Harrah’s board of directors formed a special committee of non-management directors to review the proposal from the private equity firms. Harrah’s made clear that the company has not determined that such a “transaction is in the best interests of Harrah’s and its stockholders or that Harrah’s should not continue as an independent public company pursuing its business plan as the world’s largest provider of branded casino entertainment.”

The Harrah’s buy-out is the latest in a big gaming shakeout. Earlier this month, GlobeSt.com reported that Station Casinos Inc. chairman and CEO Frank Fertitta and partners offered to buy all outstanding shares of the locally headquartered public company for $82 apiece, or about $4.7 billion.

Also, in May, Kerzner International Ltd. signed off on an $81-a-share buy-out offer from a private group led by its chairman Sol Kerzner and its chief executive Burt Kerzner. The merger was consummated in September. Other members of that buy-out group are Istithmar PJSC, Whitehall Street Global Real Estate Limited Partnership 2005, Colony Capital LLC, Providence Equity Partners Inc. and the Related Cos. LP.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.