Harrah's Entertainment, Inc. (NYSE:HET) and Caesars Entertainment, Inc. (NYSE:CZR) today announced the preliminary results of elections made by Caesars' stockholders for the form of merger consideration to be received in the acquisition of Caesars by Harrah's. Of the 314,824,856 shares of Caesars' stock outstanding as of June 10, 2005, 252,404,943 of the shares, or approximately 80.2%, elected to receive Harrah's common stock, and 62,419,913 of the shares, or approximately 19.8%, did not make a valid election. These election results do not include any shares subject to guarantee of delivery, and therefore are expected to change.
The elections are subject to proration calculations so that the aggregate number of shares of Caesars common stock to be converted into shares of Harrah's common stock in the merger will equal 66.42% of the total number of shares of Caesars common stock outstanding immediately prior to the closing of the merger.
Based on the election results received to date, Harrah's and Caesars expect that nearly 100% of the shares of Caesars common stock will elect to receive Harrah's common stock in the merger. If 100% of the shares elect to receive Harrah's common stock, each share of Caesars common stock will receive $5.96 in cash and .2157 of a share of Harrah's common stock due to the proration mechanism in the merger agreement. Harrah's will issue a press release announcing the final merger consideration when determined.
A more complete description of the adjustment and proration mechanisms applicable to elections is contained in the joint proxy statement/prospectus dated January 24, 2005, and the election materials previously mailed to Caesars stockholders, both of which Caesars stockholders are urged to read carefully.
Harrah's and Caesars expect to close the acquisition of Caesars by Harrah's after the New York Stock Exchange closes today, June 13, 2005.
|
Post Release
Get Content
Email News Brief
Saved Articles
Advertising
Handheld
XML/RSS
Post News