Biloxi Sun Herald – CNBC reported on Tuesday that Penn National Gaming and the D.E. Shaw hedge fund may make a play for Harrah’s Entertainment, the world’s largest casino operator.
The television network, citing unnamed sources, said the hedge fund and Penn National are considering a cash and stock offer. CNBC also reported that Lehman Brothers and Wachovia Corp. would provide financing and have some equity in the new company if the deal went through. Corporate spokesmen for both Harrah’s and Penn National declined comment when contacted by the Sun Herald.
Two private-equity firms, Apollo Management and Texas Pacific Group, have already made a bid for Harrah’s. Harrah’s set up an independent committee to review the reported $15.5 billion offer, which was made in October. Harrah’s has not announced whether it will accept the offer, reject the offer or consider any other offers.
Harrah’s owns the Biloxi Grand Casino, the Tunica Grand Casino and the Horseshoe and Sheraton casinos, also in Tunica.
Penn National owns the Hollywood Casinos in Tunica and Bay St. Louis and Boomtown Biloxi.
