Harrah’s buys out N.O. holders

Wednesday, July 31, 2002 | 11:04 a.m.

NEW ORLEANS -- A decade after the New Orleans land casino was approved by the Legislature, Harrah's Entertainment Inc. says it will pay $54 million for full ownership of the downtown gambling hall.

Harrah's said it reached an agreement late Tuesday with the casino's separate ownership company, JCC Holding Co., to acquire the 37 percent of JCC Holding stock that Harrah's does not already own.

Las Vegas-based Harrah's said it will pay $10.54 per share for the outstanding stock, which will be assigned to a Harrah's affiliate. Harrah's held 49 percent of JCC Holding until June, when it upped its share to 63 percent and told federal securities regulators that it wanted to take total control of the company.

"This acquisition will benefit the customers, employees and other stakeholders of Harrah's New Orleans by allowing us to focus on optimizing the property's potential," Harrah's CEO Phil Satre said.

The merger agreement apparently ends a bitter fight between Harrah's and JCC Holding, which was formerly controlled by the casino's bondholders. JCC Holding chairman Paul Debban said the merger was unanimously approved by the company's board.

"We believe this transaction maximizes value for JCC stockholders," Debban said.