Harrah’s Shelves IPO

Harrah’s Entertainment Inc. was set to IPO this week but canceled due to “market conditions.” I’m not sure what changed so much over the past week, but they didn’t ask my opinion.

In the years leading up to the financial crisis, gobs of companies were taken off the market by private equity firms. Now the companies are being unloaded and many are for losses. Bloomberg estimates that 40% of the IPOs from private equity firms are for losses.

Harrah’s had been bought out by Apollo Global Management and TPG Capital in January 2008. The stock had been hugely successful for investors over the years.

Posted by on November 19th, 2010 at 10:33 am


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