Casino giant accepts $17bn offer

Harrah's has suggested it is open to higher offers

The world's biggest casino operator has accepted a $17.1bn (£8.7bn) buyout offer from two private equity firms.

Las Vegas-based Harrah's Entertainment said it had agreed to a revised $90-a-share bid from Apollo Management and Texas Pacific Group.

The deal marks the end of more than two months of talks between Harrah's and the private equity groups.

Harrah's owns US casino firm Caesars and recently acquired UK casino operator London Clubs International.

'Anything possible'

Harrah's is currently in the process of buying rival Las Vegas casino Barbary Coast Hotel and Casino from Boyd Gaming.

In October, Apollo Management and Texas Pacific Group unveiled a $81-a-share offer for Harrah's.

The new offer marks a 35% premium on the price of Harrah's shares two months ago.

The company said that while it backed the private equity groups' current bid, it remained open to higher offers.

"I don't expect further bids, but anything is possible," chief executive Gary Loveman said.

The deal is subject to shareholder backing, while regulatory approval could take more than a year.