LONDON -(Dow Jones)- Harrah's Entertainment Inc.'s (NYSE:HET) (HET) takeover of London Clubs International PLC (LSE:LCI) (LCI.LN) Monday became almost certain after the U.S. company raised its previous offer and secured the support of the largest shareholder in the U.K. casino firm.
Las Vegas-based Harrah's, the largest casino operator in the world, Friday increased its bid for London Clubs to 135 pence, or $2.54, a share from 125 pence. The total value of the deal is about $570 million, Harrah's said.
It also reached a deal to acquire Genting International PLC's (Singapore:G13) (G13.SG) 29.6% stake at the revised price.
Speculation had been rife that the Malaysian gaming operator would make a counteroffer for London Clubs.
Greg Feehely, an analyst at Altium Securities, said the revised offer, which represents a fair value for London Clubs, removed the main uncertainty for other shareholders.
"On that basis, we would advise shareholders to accept Harrah's offer," he said.
At 0732 GMT, London Clubs shares were up 3.5% to 134 pence in a higher London market.
Harrah's itself is a takeover target following a GBP8 billion bid from private equity groups Apollo Management and Texas Pacific Group.
Company Web site: http://www.lciclubs.com
http://www.harrahs.com
-By Elena Berton, Dow Jones Newswires; 44 20 7842 9267; elena.berton@ dowjones.com
(END) Dow Jones Newswires 10-23-06 0402 Copyright (c) 2006 Dow Jones & Company, Inc.
