Private Equity Firms Roll The Dice On Harrah’s

Dec 21 2006 | 10:31am ET

Harrah's Entertainment has entered into a definitive agreement for affiliates of Texas Pacific Group and Apollo Management to acquire Harrah's in an all-cash transaction valued at approximately $27.8 billion, including the assumption of approximately $10.7 billion of debt.

Under the terms of the agreement, stockholders of the casino operating company will receive $90 in cash for each outstanding Harrah's share. This represents a premium of approximately 36% over Harrah's closing share price on Sept. 29, the last trading day before the initial offering by the private equity firms.

Under the merger agreement, Harrah's may solicit superior proposals from third parties during the next 25 days, which it intends to do, according to the company.

Apollo is currently investing its sixth private equity fund, which, along with related co-investment entities, represents approximately $12 billion of new capital.

TPG was founded in 1992 and currently has more than $30 billion of assets under management.


In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...