Casino giant buys back shares

Tuesday, Aug. 3, 1999 | 11:43 a.m.

Harrah's Entertainment Inc., the second-largest U.S. gambling company, said its board of directors authorized the repurchase of up to 10 million shares of the company's common stock before December 31, 2000.

The repurchase is worth about $200 million at current prices. The purchases will be made from time to time in open market or privately negotiated transactions as market conditions and other factors warrant, said Harrah's, which is moving its headquarters from Memphis, Tenn., to Las Vegas.

"We think our stock is at a good value, so it's a good time to buy," spokesman Ralph Berry told the Commercial Appeal newspaper in Memphis.

The move will also prevent dilution of earnings per share as the company issues stock for its executive compensation program, Berry told the Commercial Appeal.

"It's a good use of capital provided the share price is reasonable," analyst Todd Jordan of Raymond James & Associates said.

Harrah's stock closed Monday at $20.81, off 50 cents per share.

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