Harrahs Rumored to Be Buying Two British Casinos

Harrah's Enterntainment Company declined to comment on Monday about rumors that surfaced over the weekend saying they were interested in acquiring two British casinos that are about to merge.

The London Times reported on Sunday that the Las Vegas-based company was studying a proposal to buy Stanley Leisure Organization, which is in talks to acquire London Clubs International in a deal estimated at $1.2 billion.

"We don't comment on market rumors," Harrah's spokesman Alberto Lopez said on Monday.

Bear Stearns analyst Joe Greff, in a research note on Monday, wrote that the acquisition could make sense, at the right price.

"The British market is in the midst of a rapid expansion, and a British presence would serve as a good base for watching over Harrah's European growth projects, namely in Spain and Slovenia," the analyst wrote.

Greff wrote that at current stock prices, a deal to acquire Stanley Leisure and London Clubs would be roughly neutral to Harrah's earnings per share, but the deal would dilute earnings per share at higher prices, excluding possible cost savings or revenue gains.

August 14, 2006
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com    Previous Page | Internet Gambling | Top Online Casinos | Submit News!

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