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Increased Harrah's bid wins control of LCI
Message was posted: 09:55 Oct 24th, 2006

User: Money Talks Rank: Casino Gold: 569CG Contributor rating: 1240 Status: Offline

Casino news from http://business.timesonline.co.uk/ HARRAH’s, the world’s biggest casino operator, secured control of London Clubs International last night after raising an earlier bid to about $570 million. Harrah’s, the owner of Caesars Palace in Las Vegas, said that a subsidiary of Genting International, the largest single holder of LCI shares, had agreed to sell its 29.6 per cent stake at 135p per share. Earlier this month shares in LCI, which owns Rendezvous on Park Lane, Fifty in St James’s and the Golden Nugget in the West End, rose amid speculation that Genting, of Malaysia, was to trump Harrah’s initial 125p-a-bid share.Genting has just won Stanley Leisure, Britain’s biggest casino operator, and analysts believed that a move on LCI would be logical. However, Harrah’s, which itself is the target of a $25.9 billion buyout bid from the private equity firms Texas Pacific and Apollo Management, secured the deal by raising its bid for LCI from $530 million to $570 million. Harrah’s, which is looking to expand its business overseas as the American gaming club market becomes saturated, said that it expected the LCI transaction to close in the fourth quarter of this year. The private equity bid for Harrah’s is being reviewed by a committee of non-management board members. Harrah’s operates 39 casinos in the US, including the Showboat in Atlantic City, the Rio Hotel & Casino in Las Vegas and the Harrah’s casino in New Orleans.