LAS VEGAS – Harrah’s Entertainment Inc. Tuesday announced it has received notice of an unsolicited “mini-tender” offer, by TRC Capital Corp., to purchase up to 1,000,000 shares of its common stock, or about 0.5 percent of the shares outstanding.
Harrah’s warned stockholders that, at $73 per share, TRC Capital’s unsolicited offer was about 2.05 percent below the common stock’s $74.53 per share closing price on Oct. 18, the day before the offer commenced.
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“Harrah’s does not recommend or endorse tendering shares in response to this unsolicited offer in the event the tender offer price is below the market price,” the entertainment company said in its news release. “Harrah’s is not associated with TRC Capital or its offer.”
TRC Capital has made similar below-market “mini-tender” offers for shares of other companies, Harrah’s noted. Such offers avoid many disclosure and procedural requirements of the U.S. Securities and Exchange Commission. The SEC has even issued an alert, cautioning investors about “mini-tender” offers; information on such offers and their risks can be found at www.sec.gov/investor/pubs/minitend.htm.
Harrah’s urged investors to check the current market price, consult their broker or financial advisor and exercise caution if considering TRC Capital’s offer. Those who already have tendered their shares are advised that they may withdraw their shares, by providing the written notice described in the TRC Capital offering documents before the expiration of the offer – currently set for 12:01 a.m. on Nov. 17.
The SEC’s recommendations to broker/dealers in these circumstances also can be found on the agency Web site, at www.sec.gov/divisions/marketreg/minitenders, Harrah’s said, and additional information can be found int the New York Stock Exchange’s Information Memo Number 01-27, issued Sept. 28, 2001, which is posted under “Market Professionals – Information Memos” at www.nyse.com.
Harrah’s Entertainment Inc. (NYSE: HET) is the world’s largest provider of branded casino entertainment Additional information is available at www.harrahs.com.
