HERE AN OFFER, THERE AN OFFER, EVERYWHERE AN OFFER-OFFER

Implications: What a terrific position to be in - everyone wants to buy your company, but just can't seem to get the numbers correct. Harrah's must be loving all the attention, not to mention the jump in their stock. No doubt it will level off again very soon. It's hard to determine, at this writing, if there is any real significance to this recent offer. The investment community will no doubt keep a keen eye on what transpires over the next few weeks. It's a great buy if they are able to get the Stock Holders to agree.

Analysis: Well now, more investment types coming out of the wood work for the purpose of purchasing this vibrant company. Penn National Gaming and D.E. Shaw are planning an unsolicited bid to make this takeover plan a reality. I spoke about the possibility of other bids happening in previous articles.

The real question will be, can these two companies put together the correct package that will entice Harrah's to sell. They say that they are well financed and can make this deal happen, a fact that remains to be seen. Remember that the buy out numbers do not reflect the daily operational cost of doing business. It also does not include the gigantic cost of construction of the the 350 acres they must develop along the Las Vegas strip. It's any ones guess just what that cost might be, however, it's in the billions. The dollars used getting this 350 acre property together makes it almost impossible let stand as it is. Harrah's Entertainment has not, as yet, mentioned what their plans for this new development might be. For that matter,  they have remained rather silent since they completed the deal with the Boyd Group for the swap that allowed them to have the property that the Barbary Coast now resides on. That piece of property gave them the finishing touches for their planned development and completed the land purchases for this new project.

I don't think that this will be the last time we hear about a takeover bid by an a group of investors ready to buy Harrah's or any other viable casino company. It's my feel that this is a very long way from happening for Penn National and Shaw. I am sure that they have investigated to possibilities of making this happen - Numbers are everything and they must get it correct if they want to test these very deep waters. It's certainly a fact that in order to get some attention in this matter they must make an offer higher and more compatible than previous offers made to Harrah's. You have to get the Stock Holders to sit up and take notice or they are just prolonging the agony of defeat. 

This will be another very long process and will keep all involved on the front pages for a few more months. Is there really a buy out in the future of Harrah's- Hard to make sense of it all.