AUTHOR: Jerry "Jet" Whittaker
TITLE: WSOP Poker Host Harrah's acquires London Clubs International 
DATE: 3:58 AM
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BODY:
<p class="mobile-post">Harrah's, host of the World Series of Poker (WSOP) and the world's largest
casino owner and operator, announced that London Club shareholders have
accepted Harrah's latest offer of $570 Million to buy a majority holdings of
London Clubs International. Harrah's has said it hopes to complete 100%
purchase of London Clubs shares by the end of the year. London Clubs
operates 7 casinos in the U.K and has 4 other casinos being developed. They
also manage 2 casinos in Egypt, a casino in South Africa, and have a
consulting agreement with a casino in Lebanon. On October 20, a subsidiary
of Malaysia's Genting International agreed to sell its nearly 30% stake in
London Clubs to Harrah's at the higher price of 1.35 pounds per share,
making Harrah's majority acquisition possible. The deal means Harrah's will
pay $570 million for London Clubs, an additional $40 million above their
original offer. The UK is licensing and regulating its gaming industry
beginning 2007, which includes plans to approve larger Las Vegas-style
'supercasinos'. Before Harrah's purchase, London Clubs was already a strong
contender for a UK supercasino license. Harrah's brand, depth and experience
can only strengthen their bid. Analysts viewed the London Clubs deal as way
for Harrah's, which operates 39 casinos in 13 states, to expand its
international presence. The company previously announced plans to build
casinos in Slovenia and Spain. Harrah's had been unsuccessful gaining a
foothold in Asia to date. Harrah's withdrew its joint bid for a casino in
Singapore in October. And they are still trying to enter the lucrative Macau
market. But with the pending acquisition of London Clubs, Harrah's will not
only add to their international portfolio, but also gain expansion
opportunities in the UK market and a platform for further international
expansion. "The strong collection of London Club properties would put
Harrah's in a strong position to take advantage of the evolving regulatory
framework in the United Kingdom," Harrah's Chairman Gary Loveman said. "The
multinational operational experience of the London Club's management
strengthens Harrah's existing team, enhancing the success for international
expansion opportunities."</p>
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