Harrah’s Entertainment, the world's largest casino operator, today revealed it has received a $15.05 billion (£8bn) bid from private equity groups Apollo Management and Texas Pacific Group.

The all cash $81-a-share offer represents a 22 per cent premium to Harrah’s closing stock price on Friday on the New York Stock Exchange. Shares in the group soared in early deals in New York today on the news, gaining 18 per cent to $78.37.

Harrah’s said it has established a special committee of independent directors to review the offer and has retained UBS Securities as an adviser. It added in a statement: "The special committee has not determined that a transaction is in the best interests of Harrah's and its stockholders."

Including Harrah's $10 billion debt pile, a successful deal would rank alongside the biggest leveraged buyouts this year, behind the takeover of HCA, the largest US operator of hospitals, for $33 billion including debt, and the $22 billion bid for Kinder Morgan, the energy group.

Founded in 1937, Las Vegas-based Harrah’s owns or manages nearly 40 casinos, most under the Harrah's, Caesars and Horseshoe brands.

Analysts said the Harrah's approach could trigger more approaches to casino operators from private equity groups awash with cash and seeking steady cash flows. However, bond investors signalled fears that a debt-fuelled takeover could see Harrah's credit rating, currently BBB-minus, according to Standard & Poor's, sink into junk territory.

In its latest financial statement, Harrah's said second-quarter net income increased 22 per cent to $128.6 million as revenue climbed 67 percent to $2.37 billion. The group has reported improved figures in 9 of the past 10 quarters.

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