Boyd Gaming, Harrah's complete billion-dollar mergers

02.07.2004, Lesen Sie hier den Bericht über «Boyd Gaming, Harrah's complete billion-dollar mergers».

Boyd Gaming Corp. and Harrah's Entertainment completed separate mergers Thursday worth a total of $2.7 billion dollars. Boyd Gaming closed the $1.3 billion deal with Coast Casinos, creating the fifth-largest gambling operator in the country, while Harrah's Entertainment cemented its $1.45 billion merger with Horseshoe Gaming Holding Corp.

Harrah's now becomes the largest casino operator in the country with combined revenues of $5.1 billion. But it could quickly lose that title if regulators approve a pending merger between MGM Mirage Inc. and Mandalay Resort Group Inc.

The Boyd Gaming merger will create a powerhouse company in Las Vegas that will cater to area residents, Chairman William S. Boyd said Thursday. "This brings us to a totally new level as one of the two major companies serving the dynamic and growing Las Vegas locals market," Boyd said in a prepared statement, referring to rival Station Casinos Inc. Under the terms of the merger agreement, Coast will become a wholly owned subsidiary of Boyd Gaming. Michael Gaughan will remain Coast's chief executive and become Boyd's second-largest shareholder. "We built a great company and now we are joining a great company," Gaughan said.

Boyd said Gaughan's agreement to stay on in a management role was critical to the deal. The two companies signed the merger agreement February 6 and obtained approval from gambling regulators last month. The Coast brand will remain intact and all company management will be retained. The combined companies will keep the Boyd Gaming name and will have revenues of about $2 billion, operating 18 properties with 10,000 rooms nationwide.

In addition, Coast has a 461-room expansion under way at The Orleans and recently broke ground on a new $350 million property, which will have 700 rooms in the developing area south of Las Vegas. Boyd Gaming has 7,600 employees in southern Nevada and 18,000 nationwide, which will be combined with Coast's 7,500 employees, all of whom work in Las Vegas.

The Federal Trade Commission voted last month to close its investigation into the pending acquisition of Horseshoe Gaming by Harrah's, clearing the way for final regulatory approval of the deal. The transaction also has been approved by regulators in Indiana, Mississippi and Louisiana. Horseshoe Gaming operated riverboat casinos in Hammond, Ind., Tunica, Miss. and Bossier City, La. Harrah's operates 22 casinos in the United States, including Nevada, New Jersey, Louisiana. The company is Nevada's second-largest employer with 42,000 workers.

Über Harrah's Operating Company, Inc.:

Founded in 1937, Harrah´s Entertainment, Inc. is the world´s largest casino operator.

We operate 28 casinos in 12 states under the Harrah´s, Harveys, Horseshoe, Rio, and Showboat brand names. Our goal is to provide great customer service in exciting and entertaining environments, and become your overwhelming first choice for casino entertainment.

We concentrate on building loyalty and value for our customers, shareholders, employees, business partners, and communities by being the most service- oriented, technology-driven, geographically-diversified company in gaming. Enjoy your visit to our site. We look forward to your comments about us.

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