Harrah’s gets final OK for deal

Harrah's Entertainment Monday got the final go-ahead to complete its deal to go private.

The National Indian Gaming Commission gave tentative approval to Apollo Management and TPG Capital's plans to take the world's largest gaming company private in a $17.7 billion private equity buyout.

The conditional approval clears the way for the companies to move ahead with their deal while the Indian gaming commission finishes its review.

The Indian gaming commission was the final regulatory group that needed to review the buyout proposal. Harrah's manages American Indian-owned casinos in Arizona, California and North Carolina.

The deal is now expected to close early next year although Harrah's declined to speculate on a specific closing date.

Harrah's stock closed at $88.85 Monday, up 52 cents or 0.59 percent. Once the deal closes, the company's stock will cease to be traded on the New York Stock Exchange.

The company's current management team, led by Harrah's Chairman and CEO Gary Loveman, will continue to oversee the day-to-day operations of the company.

The deal, which is close to $31 billion including debt, received approval from Nevada gaming regulators this month. The deal also required approval from regulatory boards in several states where Harrah's operates.

Harrah's owns or manages 50 casinos worldwide, including Rio, Paris Las Vegas, Bally's, Bill's, Flamingo, Imperial Palace, Harrah's and Caesars Palace in Las Vegas.

The company also owns casinos in Uruguay, the United Kingdom, Egypt and South Africa and a golf course in Macau. Also, Harrah's began tender offers and consent solicitations on Friday for the company's and a subsidiary's various outstanding debt securities totaling approximately $1.6 billion at various rates.

While the offers and solicitations are connected to the buyout agreement, its completion is not a condition for completing the merger.

Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or (702) 477-3893.