Backers for Harrah’s OK huge buy out plan

April 6, 2007

Yesterday, Harrah’s Entertainment shareholders OK’d a $17.1 billion buy out by two private equity organizations in the biggest agreement ever to take a publicly held casino company private. This is big news even for our online gambling fans out there – after all, many of us have been to at least one Harrah’s casino located all over the world.

Shareholders controlling 66% of outstanding stock accepted a deal to sell the world's largest casino company to Apollo Management Group and Texas Pacific Group. This all comes to our online gambling news department through releases by Harrah’s officials.

The Las Vegas based Harrah's board had collectively suggested endorsement. All members were in favor of the massive deal.

The pact still requires authorization from gambling regulators in more than a 12 US states and many tribal nations (Indian casino properties) where Harrah's casinos are in operation.

In Nevada, gambling law makers could be asked to take up the matter as early as Fall 2007.

The shareholder votes were counted after a very brief meeting attended by about 100 Harrah’s shareholders and the meeting was not open to the public. It is being reported that there were no objections by any of the members in attendance and that the meeting was swift and concise.

A spokesperson for Apollo said the New York based company was delighted with the vote. There were no further details or comments by this spokesperson other than that

A company spokesperson for Fort Worth, Texas company, Texas Pacific, had no comment on the matter.

Harrah's shareholders that were leaving the meeting which was held at the famous Harrah’s owned Caesars Palace hotel in Vegas said they were thrilled with the ($90 per share) buy out offered to them back in December 2006. They said the meeting was as planned and simple.

Yesterday, Harrah's shares rose 14 cents to close at $84.90 on the NYSE. Shares in the casino company have traded from $58.22 to $85.58 during the past year. Any of our online gambling news article readers out there who are investors can appreciate this story.

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