The $17 billion buyout of Harrah's Entertainment Inc.
closed in January 2008, nearly a year after the original take-private agreement with Apollo Management LP and TPG was announced and despite media speculation the deal might not close because of trouble in the debt markets.
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ROLLING THE DICE
News of a prospective Harrah's buyout, worth $81 a share, first surfaced Oct. 2, but news reports Oct. 11 pegged the offer at closer to $83 to $84 a share. Reports on Tuesday, Dec. 12, said the private equity bidders could propose an $87-per-share take-private. TPG and Apollo would pay $90 a share, the company said Dec. 19.
Wall Street smiled on Las Vegas-based Harrah's and some of its gaming friends when deal buzz first surfaced Oct. 2. The next day, the Wall Street Journal gave a concise roundup of that activity:
"Harrah's Entertainment rose 9.25, or 14%, to 75.68, the second-best percentage advancer on the New York Stock Exchange. ... Other casino stocks advanced on the prospect of more M&A activity. MGM Mirage rose 1.20, or 3%, to 40.69, Station Casinos gained 2.23, or 3.9%, to 60.06 and Penn National Gaming (Nasdaq) advanced 75 cents, or 2%, to 37.27. ... Boyd Gaming gained 2.11, or 5.5%, to 40.55."
And then Tuesday came and Dealwatchers noted that as of midday: Harrah's shares had fallen 1.18% to $74.79; MGM Mirage shares had lost 1.87% to $39.93; Station Casinos shares had dropped 1.55% to $59.13; Penn National Gaming shares were down just 27% to $37.17; and Boyd Gaming shares dropped 1.23% to $40.05. It seems Monday may have been just another day.
ENDLESS ANTE-UPPING
The deal came together quickly, unlike the slow and painful process that was the Aztar Corp. bidding war earlier this year. Proving that gaming companies love to play with the stakes, the auction for the Las Vegas-based casino group rolled along for two months, driving what was a $38 per share, $2.1 million buyout by Pinnacle Entertainment Inc. up to a $54 per share, $2.62 deal with Columbia Sussex Corp.
- For the highs and lows of that auction, see a related Dealwatch. —Carolyn Murphy
| Dealwatch executive summary |
Date |
Action |
| 1.2008 |
Harrah's deal closes. |
| 12.19.06 |
TPG, Apollo win Harrah's hand with an offer worth $27.8 billion. |
| 12.12.06 |
Harrah's suitors could boost their offer to $87 a share. |
| 10.11.06 |
Offer for Harrah's may be $83-$84 a share. |
| 10.02.06 |
Harrah's considers take-private. |
| 9.29.06 |
Congress passes legislation forbidding U.K. gaming sites to collect from U.S. rollers. |
| 9.15.06 |
Dicks returns to the U.K., resigns as Sportingbet chairman. |
| 9.07.06 |
Dicks is arrested and placed in U.S. custody. |
| 5.2006 |
Aztar auction's play-by-play. |
| 5.19.06 |
Columbia Sussex finally wins Aztar. |
Source: The Deal |
