FTC requests more information on merger

Monday, Aug. 30, 2004 | 10:40 a.m.

Harrah's Entertainment Inc. and Caesars Entertainment Inc. have received a second request from the Federal Trade Commission for information on the companies' planned $9.4 billion merger.

MGM MIRAGE and Mandalay Resort Group similarly disclosed last month that they received, as expected, a second request from the FTC for information about their proposed merger.

Harrah's and Caesars said in a joint statement Friday that they intend to "respond promptly" to the information request and that it was expected.

The companies still expect to close the deal within a year of its announcement in mid-July.

"We're not going to be presumptuous about the regulators, but we remain optimistic that we'll be able to close the deal within a year," Harrah's spokesman Gary Thompson said.

At least two Harrah's deals have survived FTC inquiry in recent years, though the Caesars buyout would dwarf all others as the largest gaming deal in history. It also involves many more casino markets with potentially overlapping properties. Experts say some properties may likely be sold to appease federal and state regulators.

The FTC in 2001 requested more information when Harrah's merged with Harveys Casino Resorts and in 2003 similarly inquired further into Harrah's acquisition of Horseshoe Gaming Holding Corp.

Under federal antitrust rules, the FTC has 30 days to look at a transaction to determine whether the agency needs additional information.

The agency may make a second request for information, which extends the review period another 30 days.