Harrah's to Acquire Harveys Casino Resorts for $675 Million

(Bloomberg) -- Harrah's Entertainment Inc., the operator of Harrah's and Bally's casinos, agreed to buy Harveys Casinos Resorts for $675 million in cash and liabilities to expand in the Iowa and Nevada market.

The proposed purchase has been approved by the boards of both Harrah's and the seller, closely held real estate firm Colony Capital LLC. The purchase price includes $50 million of off- balance sheet liabilities, said Marzena Jablonska, a spokeswoman for Colony.

Las Vegas-based Harrah's would acquire Harvey's casinos in Council Bluffs, Iowa, and Central City, Colorado. Harrah's will combine its casino in North Lake Tahoe, Nevada, with the Harvey's Resort & Casino there, Harrah's said in a press release issued by PR Newswire

Harrah's shares rose $1.45 to $36.76 today. The purchase was announced after the close of trading.

Apr/24/2001 16:39 ET