Private Equity Firms Roll The Dice On Harrah’s

Dec 21 2006 | 9:31am 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

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…