Harrah's Board Still Deciding on Options, Faber Says

Harrah's Entertainment's board is still deciding whether to accept a private equity buyout, contrary to speculation that the casino operator has opted to pursue a recapitalization instead, according to CNBC's David Faber.

Harrah's shares fell on speculation that the company has rejected a proposed buyout.

"What I can tell you right now is that the board has made no such decision," Faber said on CNBC's "Closing Bell."

"In fact, the board of Harrah's hasn't made any decision at this point in terms of what course of action (to pursue)."

Since the board meeting will continue Thursday, no announcements are expected today, Faber said.

Apollo Management and Texas Pacific Group are expected to raise their bid for Harrah's from $83.50 a share, or $15.5 billion, to at least $88 a share, Faber said.

Faber also said that Penn National Gaming has submitted a bid "around the $87, $88 a share range."

Harrah's shares have been gradually climbing since the company said in early October that it had received an offer from Texas Pacific and Apollo.

Las Vegas-based Harrah's operates casinos under the its own name as well as the Caesars and Horseshoe brands. Private equity firms have turned to the casino sector as they look for cash-rich businesses in which to invest the hundreds of billions of dollars they have raised this year.