Harrah’s is Going Private
According to The Associated Press Harrah’s Entertainment Inc., the world’s largest casino company has agreed to a $16.7 billion offer from two private equity groups. The two groups are Apollo Management Group and Texas Pacific Group.An Official Announcement may come as early as today Dec 19th 2006. Harrah’s buyout price is $90 a share around 36% more than the price on Sept 29th. The two groups will assume $10 billion in dept.Harrah’s plans for their development will probably be put on hold. These two groups are equity firms and will probably sell Harrah’s in 5 years, make them public again so they can make a profit and attract money from pension plans.
Harrah’s is known for its Total Reward Loyalty Program, which I am a card carrying member, may be affected by this privatization. We will have to keep an eye on this and see what the future holds, I would hate to lose all of my Total Reward Points.
Tags: Harrah's Las Vegas