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Harrah's, Keppel Land will not submit bid for Singapore casino

Harrah's, Keppel Land will not submit bid for Singapore casino

Harrah's Entertainment Corp., the world's largest casino operator, and Singapore's Keppel Land announced Friday that they would not be submitting their joint bid for the nation's second casino resort despite three months of planning a proposal.
"Regrettably, we determined it would not be possible to deliver a development on the scale we envisioned for Sentosa Island while meeting our objectives for this project," the two companies said in a statement.
Bids for the Sentosa Island integrated resort are due Tuesday.
Harrah's said Thursday it was re-evaluating its joint bid with Keppel after receiving a US$15 billion (euro11.79 billion) buyout offer from two private equity firms. The buyout offer from Apollo Management and Texas Pacific Group, which it announced Monday, may have changed the equation, Harrah's said.
"Harrah's remains interested in future Asian development opportunities," the statement said.
Should the buyout offer be accepted, Harrah's _ which owns or manages more than 40 casinos around the world _ would have a new set of owners who would then have to undergo probity checks in Singapore.
Casino licenses in many developed countries are awarded by regulators only if the owners and key managers of the company pass scrutiny. In Singapore's case, the four parties had already gone through a series of checks ahead of the Oct. 10 deadline, and Harrah's possible new ownership would complicate the bidding process.
Three other teams have applied for Singapore's second casino license: Las Vegas casino resort developer Eighth Wonder Asia; a joint venture between Malaysia's Genting International PLC and Star Cruises Ltd., with Universal Studios as a non-equity partner; and a joint venture between Kerzner International Ltd. and Singapore's CapitaLand Ltd.
Singapore last year legalized casino gaming and said it would allow two casino resorts to be built. The first was awarded in May to Las Vegas Sands Corp. in a bid that Harrah's also competed for. The $3.6 billion casino resort is expected to be operating by July 2009.


Updated : 2021-06-15 05:43 GMT+08:00