Harrah's One Step Closer to Casino Magic
11, June 2006
Letters of intent were signed in April that were the first steps towards the eventual transfer of ownership of certain casino assets from Pinnacle Entertainment to Harrah's Entertainment. On Tuesday, May 31st, more papers were signed, this time definitive agreements to sell the remaining assets of Casino Magic Biloxi to Harrah's in exchange for two of Harrah's subsidiaries. The final step of the process will be when the transaction closes in the fourth quarter of the year.
Harrah's will also be getting a payment of around $25 million from Pinnacle for the transaction. Pinnacle's new subsidiaries (once the transactions are complete) operate businesses in the Lake Charles area.
Harrah's Entertainment is the largest casino owner and operator in the world.
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