Bid for Harrah's Expected to be Raised to $87, Paper Says

Apollo Management and Texas Pacific Group are expected to raise their bid for Harrah's Entertainment to $87 a share, the Wall Street Journal reported on its Web site on Tuesday, citing people familiar with the matter.

That would value the company at around $16 billion.

On Oct. 2, Harrah's said a committee of non-management directors was reviewing a takeover offer of $81 per share from private equity firms Apollo Management and Texas Pacific Group. The group raised the bid to $83.50 per share a week later, or $15.5 billion, sources told Reuters at the time.

Las Vegas-based Harrah's, which operates casinos under the Harrah's, Caesars and Horseshoe brand names, has also drawn the interest of another group led by Penn National Gaming and hedge fund D.E. Shaw.

Penn, which is significantly smaller than Harrah's, is considering making a cash-and-stock offer, a source familiar with the situation told Reuters said two weeks ago.

Harrah's board set a deadline of Tuesday for bids and planned to meet on Wednesday to consider buyout offers, sources told Reuters on Monday.

Harrah's was not immediately available for comment.