Entertainment accepts buy-out bid
Entertainment has agreed on the $27.8 billion buyout offer from
the private equity firms Apollo Management Group and Texas
Pacific Group. The official bid was announced at the end of
September and now one of the biggest publicly traded casino
company is going into private hands. The two companies also
agreed to assume Harrah's dept, valued at over $10 billion, with
a real possibility of that debt to increase during the
transition process. To go into effect the deal still has to be
voted by Harrah's Entertainment shareholder.
According to their CEO this is
just a matter of changing ownership and not direction; the new
owners fully support the current development vision and plan to
continue in the same way.
In accordance with the current
buy-out offer, Harrah's has the right to look for a better bid
for 25 days, which they intend to do, especially after Penn
National Gaming had offered $87 a share, beating the Apollo and
Texas Pacific's $81 a share.