LAS VEGAS Harrah’s Entertainment Inc. has filed paperwork with federal regulators to publicly trade shares owned by a hedge fund controlled by billionaire John Paulson.
Paulson’s fund intends to sell its 9.9% stake as soon as possible, according to the filiing. Paulson acquired the stake in June in exchange for US$710 million in debt from Harrah’s. Apollo Global Management LLC and TPG Capital LP will retain their combined 89.3% stake in Harrah’s.
Along with his interest in Harrah’s, Paulson has substantial stakes in two other major gaming players. His fund is the second-biggest shareholder in MGM Resorts International, after founder Kirk Kerkorian, and it is the fourth-largest owner of Boyd Gaming Corp.
Separately, Harrah’s and Rock Gaming LLC announced this week that they are exploring a partnership to develop and operate casinos in Cleveland and Cincinnati that will represent a US$1 billion investment.