Executive structure to remain following acquisition

Monday, March 14, 2005 | 10:52 a.m.

Harrah's Entertainment Inc. said Friday that its top executives will retain their positions once the company acquires Caesars Entertainment Inc.

Harrah's Chief Executive Officer Gary Loveman will be chairman, chief executive officer and president of the company. Charles Atwood will be Harrah's senior vice president and chief financial officer. Tim Wilmott will be chief operating officer.

Harrah's will continue to operate three divisions. Tom Jenkin will be the western division president, Anthony Sanfilippo will be central division president and Carlos Tolosa is eastern division president.

As reported previously, Harrah's expects to appoint Caesars board members William Barron Hilton and Stephen Bollenbach to its board of directors.

Hilton is co-chairman of the board at Hilton Hotels Corp. and Bollenbach is chairman and chief executive of Hilton Hotels.

All current Harrah's directors will continue to serve on the board following the deal. The company previously said it will consider adding as many as two additional Caesars directors to its board.

Harrah's and Caesars shareholders separately approved the $9.4 billion deal Friday. In both cases, virtually all voting shareholders said "yes" to the acquisition.

In a statement, Loveman said the company expects "numerous" Caesars property managers to remain with the company after the deal is consummated by the end of June.

Loveman also called Hilton and Bollenbach "legends within the hospitality industry and buisnessmen of unrivaled experience and reputation."

"Their counsel and leadership will be invaluable as we combine two of the most successful companies in gaming."

Caesars officials will be entitled to exercise millions' worth of Caesars stock options upon the deal's close. As for whether they will cash out their stock or obtain Harrah's shares, Harrah's spokesman Gary Thompson said that decision hasn't yet been determined.

That won't be known until the company knows how many Caesars shareholders elect to receive Harrah's stock or cash in exchange for their shares, Thompson said.

Harrah's has said it expects to issue about 68 million shares in connection with the purchase.