Second Group May Make Bid for Biggest Casino Company [New York Times]
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Summary: Coming on the heels of last month's $15.5 billion offer by Apollo Management Group and Texas Pacific Group to buy Harrah's Entertainment, the largest casino operator in the world, a second buyout group is now considering an offer for the company. The new offer, led by Penn National Gaming, which owns casinos and racetracks, and D. E. Shaw, the hedge fund, sent shares up 2.5% yesterday after it was announced on CNBC. Any buyout would require the new owners to obtain a license to operate gambling businesses in the state of Nevada, a requirement that has stymied deals for casino operators in the past.
Related links: Media coverage: Las Vegas Business Press. Commentary: Who Will Acquire Harrah's? * Valuing the Casino Industry: Are There More Harrah's Out There? * Harrah's Seems Underwhelmed by Buyout Offer * Harrah's Gamble Not Without Risk * Bidding Up Harrah's.
Potentially impacted stocks and ETFs: Harrah's Entertainment (HET), Penn National Gaming (PENN) * Competitors: Wynn (WYNN), Las Vegas Sands (LVS), Trump Entertainment Resorts (TRMP), Monarch Casino & Resort (MCRI), Pinnacle Entertainment (PNK).
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