On December 26th, 2007, Harrah’s Entertainment Incorporated has bypassed the last remaining regulatory requirement to accomplish the biggest casino buyout in casino history. Harrah’s commented that the National Indian Gambling Commission has given its approval of Harrah’s $17.7 billion acquisition by private equity buyers Apollo Management and Texas Pacific Group, pending the final study that will be made by the commission.
The temporary approval made by the commission means that Harrah’s can now aggressively pursue the deal, which is expected to be finalized in 2008. No additional regulatory permission for the deal is needed. Officials with Harrah’s in Las Vegas, Nevada and the Indian Gambling Commission in Washington, D.C. did not comment on the news.
Harrah’s and the private equity groups received the signal for the buyout deal last week from the Nevada Gaming Commission, putting an end to a ten week campaign to get approval from eight different state regulators. Harrah’s, which earned $10 billion last year, manages more than fifty casinos like Caesar’s in Las Vegas and Bally’s in Atlantic City. The stock of the company was at 51 cents to $88.84 during trading. The deal will require Apollo and Texas Pacific to pay $90 per share of Harrah’s.