Harrah's Entertainment (HET) Sees Volatility Mid-Day on Rumors

Harrah's Entertainment Inc. (NYSE: HET) has seen some volatility mid-day today as rumors swirl the company could opt for a recapitalization versus a private equity buyout. A decision from the company is expected later in the week.

The latest reports suggested the private equity group of Apollo Management and Texas Pacific Group would raise their bid from $83.50 to $87. The stock is currently at $79.40.

Private Equity Group Expected to Raise Harrah's Bid to $87 - WSJ

According to reports from the Wall Street Journal, Apollo Management and Texas Pacific Group are expected to raise their bid for Harrah's Entertainment (NYSE: HET) from $83.50 to $87.

Final bids for Harrah's are due today and a decision from the company is expected later this week.

Shares of Harrah's closed at $79.74 on Monday.

CNBC's Faber Reports on a Competing Bid for Harrah's Entertainment (HET)

CNBC's David Faber reports on a competing bid for Harrah's Entertainment Inc. (NYSE: HET). Faber said a Penn National Gaming Inc. (Nasdaq: PENN) group, including DE Shaw, Lehman Brothers, and Wachovia are looking at a bid for Harrah's. Faber said it is not clear if the Penn group could present a competitive bid.

Currently, Harrah's is evaluating a bid from Apollo Management Group and the Texas Pacific Group, which was last reported to be around $83-$84 per share.

Harrah's is up 1.2% to $77.59 in afternoon action.