Apollo Management Group and the Texas Pacific Group have raised their bid for Harrah's Entertainment Inc. (HET), the world's largest casino operator, to more than $15.5 billion.
The company's directors rejected the equity group's first offer of $15.05 billion in cash. The new bid offers $83 to $84 a share compared to $81 a share in the old bid. No word yet from Harrah's on the newest offer.
Harrah's operates casinos as well known as Caesars and Horseshoe in Las Vegas and Atlantic City.
There has never been a bid as large or as ambitious as this private equity deal offered in the casino industry. Investments in this industry were once considered off-limits due to the huge capital requirements and tight regulations, as reported in this NYTimes.com article.
Some big names are backing up the investment group such as, Bank of America Corp. (BAC), Deutsche Bank AG (DB), JP Morgan Chase (JPT) and Merrill Lynch & Co. Inc. (MER).
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