Group bets on Harrah’s
LAS VEGAS — Harrah’s Entertainment Inc., the world’s largest casino company, has agreed to a $16.7 billion offer from two private equity groups, two people with knowledge of the negotiations said.
The agreement with Apollo Management Group and Texas Pacific Group came late last week but lawyers for both sides have been working out the details, said the sources, who spoke on condition of anonymity because of the sensitivity of the talks.
An official announcement on the deal could come as early as Tuesday, these people said Monday. A third person close to the matter, who also spoke on condition of anonymity, said a final agreement was ‘’very close.'’
Spokesmen for Harrah’s, Apollo and Texas Pacific declined to comment.
The deal values Harrah’s at $90 per share and represents a 36 percent premium over Harrah’s share price on Sept. 29, the last trading day before Apollo and Texas Pacific first proposed a buyout Oct. 2. The group also will assume $10.7 billion in debt.
