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Harrah’s “could go public again” when Vegas revenues recover
Harrah’s Entertainment could return to the stock market in 2013-15, CEO Gary Loveman has speculated. Loveman told Reuters that the company – taken private by buyers TPG and Apollo in a $31bn deal at the beginning of 2008 – would wait, however, for economic recovery and the legalisation of online Poker in the U.S. before returning to the market. There had been no discussion of firm dates yet, he added.
A recovery in the Las Vegas market, particularly, will be important to make Harrah’s attractive to investors. While gaming revenue there appears to be stabilising, hotel room rates are still low, and Harrah’s relies on Vegas and Atlantic City – also beset by its own problems, as we report elsewhere in this issue – for about 40 percent of earnings.
“Las Vegas remains weak and will remain weak for the foreseeable future,” said Loveman, although he added that bookings for 2011 were “encouraging”.
The firm is also looking at moving into Macau, he said, although no deal is on the table.
“We do have an interest in Macau . We think Caesars is the best brand for that market,” Loveman was reported as saying.
Separately, MGM Mirage is preparing for a $1bn initial public offering (IPO) on the Hong Kong Stock Exchange, a move which is seen as deepening its commitment to Macau and possibly precipitating a departure from Atlantic City.
