Rhode Island Plans Shaken by Buyout Proposal

As reported by Providence Journal: "The casino drive was shaken yesterday by news of the potential sale of Harrah's Entertainment, the Las Vegas-based company bankrolling the proposed Narragansett Indian casino in West Warwick.

"Harrah's, the world's largest casino operator, acknowledged yesterday that two private equity firms -- Texas Pacific Group and Apollo Management -- have offered to buy the company's outstanding stock for $81 a share.

"From the State House in Providence to West Warwick Town Hall, news of the $15.1-billion play provided fresh ammunition to opponents of the casino referendum, while champions of the proposal tried to play down the significance.

"…But key lawmakers -- and Narragansett Chief Sachem Matthew Thomas -- tried to downplay the relevance of the purchase offer to the Nov. 7 referendum on changing the state Constitution to allow the tribe and its unnamed 'chosen partner"'to operate the state's first full-fledged casino.

"…House Finance Chairman Steven M. Costantino, D-Providence, agreed the purchase offer 'doesn't change the picture. . . . Should the referendum be successful, we would then begin to negotiate a contract with the Narragansetts and their partner, whether it be Harrah's or someone else.'…"

2006-10-03