Harrahs Entertainment is the largest casino operator in the world.  The company owns, among other things, thirty nine uk casinos in the United States and has recently been moving into other world markets, having recently bid on London Clubs International. Among its U.S. holdings are the Rio Hotel and Casino in Las Vegas, Harrah’s in Lake Tahoe, the Showboat in Atlantic City, the Grand Casino Resort in Tunica and Harrahs Casino in New Orleans. The company also has other holding abroad.

Harrahs, itself, is now the subject of a buyout bid.  Two private equities firms, Texas Pacific and Apollo Management, have offered what works out to be almost $26 billion for the firm, after the firm’s debt obligations are taken into consideration. The offer is under consideration by Harrahs board.  It represents $81 per share price which is 22% over the stock’s closing price as of last Friday. 

The financial structure of the organization makes Harrahs attractive to equity firms since it is a business structure that can support a high level of debt.  It has a good strong cash flow position and has extensive real estate holdings.  Its foreign holdings would give the equities companies access to the London market where major changes in the gambling law go into effect in 2007 as deregulation goes into effect.  The board is supposed to vote on the London deal on October 17.

If the Harrah’s board approves the offer and the deal proceeds, it would be the fourth largest buyout in U.S. history.It would be the largest going-private deal ever for a publicly held uk casino company and the seventh biggest leveraged buyout deal of any kind of company. The $90 a share buyout offer was a 36 percent premium over Harrah's closing price on Sept. 29. That was the last trading day before the casino company announced Apollo Managment and Texas Pacific had offered $81 per share Oct. 2 to take the company private.

A special committee of Harrah's board, which excluded chief executive and chairman Gary Loveman, had been meeting in New York since last week after the company set a Tuesday deadline to receive offers. You would also like more games like uk bingo and many more.