Rank plc rejects Harrah's offer

[jetset]

HARRAH'S MOVE REJECTED BY RANK?

American approach rejected by land and online gambling group

According to reports in the UK newspaper The Telegraph over the weekend, the British land and online gambling group Rank plc has rejected an offer from American land gaming giant Harrah's Entertainment which would have seen the Americans acquire 28 percent of the English company in return for Harrah's casino holdings in the UK.

Without identifying its sources, the newspaper reported that Rank rebuffed the proposal, which could have resulted in an enlarged Rank group, but with a significant American ownership stake.

When approached by the newspaper, a spokesman for Rank declined to comment, and Harrah's could not be reached for a response.

Reuters reports that Rank has seen its shares battered over the last year as a ban on smoking and forced removal of lucrative slot machines sparked a sharp decline in its bingo business, while a surprise hike in government taxes has hit casino profits hard.

Media and analyst reports have linked a string of names to a possible offer for the firm including Ladbrokes and Malaysia's Genting.

Harrah's itself is currently being taken over by private equity funds Apollo Management LP and TPG Capital. It grabbed a foothold in the UK casino market last year when it bought London Clubs International but the tax changes have left a hole in the deal's finances.