Paulson & Co, the US based hedge fund run by John Paulson looks likely to sell its 10% stake in Harrah’s Entertainment, according to official reports filed yesterday with the Securities and Exchange Commission (SEC).
Paulson & Co acquired a 10% stake in Harrah’s Entertainment only 3 months ago and the move to sell so quickly has come as a surprise to many industry insiders. Harrah’s, which owns and runs over 50 casinos, including the world famous Caesars Palace in Las Vegas is arguably one of world’s largest and best known land based casino companies.
However it is the nature of the sale that has got tongues wagging in investment circles. Agents acting on behalf of Paulson & Co filed an S-1 form with the SEC, a move normally associated with firms looking to go public. The move triggered the Wall Street Journal to incorrectly report that Harrah’s was looking to float again on the public stock exchange. This was quickly and publicly denied by Harrah’s management.
What does appear certain is that Paulton’s 10% stake is up for sale. With the legal landscape gradually becoming more positive towards online gaming in the States it’s likely there will be a number of buyers circling.
However, Harrah’s recent financial results have been disappointing having recently posted a $274m Q2 loss. Despite falling attendances at their venues, the group have announced aggressive expansion plans that include $600m investments in new casinos in Cleveland and Cincinnati. Whether Paulson will get a return on his investment remains to be seen.
Source: Online Pokies Club
Tags: Harrahs Entertainment
This entry was written by Felix on Saturday, August 14th, 2010 at 3:32 am and is filed under News.
