Harrah’s tallies Caesars shares

Jun 21, 2005 5:04 AM

Following last week’s completion of the acquisition of Caesars Entertainment Inc. (CZR), officials at Harrah’s Entertainment Inc. (HET) took time to tally the number of Caesars shares offered by stockholders to Harrah’s to receive the offered amount of the shares/cash proposal and those who failed to take advantage of the offer.

Based on the final election results and the pro-ration calculations made according to the merger agreement, the tally showed the following:

Caesars stockholders with 307,059,463 shares or 97.53% will receive 0.2211 of a share of Harrah’s common stock and $5.66 in cash for each share held at the time of the merger, and

The holders of 7,764,707 shares or 2.4% of the total outstanding who did not make a valid election and were deemed by the company to have elected to receive cash, will receive $17.15 in cash.

Treatment of fractional shares will be based on the average closing sale price for Harrah’s common stock for each of the 10 consecutive trading days ending on June 10.

At the close of business on Friday June 10, Harrah’s shares traded at $73.17 per share while Caesars traded at $21.92 per share. But on Monday, when the merger was completed at the close of business, Harrah’s had fallen to $72.10 while Caesars was at $17.77 per share.