Harrah’s Fails to Sell it To You, Sucka

Harrah’s (which is changing its name to Caesar’s) canceled their planned IPO citing “market conditions.”  I went through what this really means when I wrote about Liberty Mutual last month – the company was unable to attract the valuation that they wanted from the market.  The AP tells us:
“A Harrah’s spokeswoman said the company is not commenting beyond Friday’s brief statement announcing the cancellation.”
So let’s speculate (sarcastically) on what market conditions Harrah’s could have found so unfavorable, and could have resulted in the canceled IPO…

Could it be that one of the largest IPOs in history (GM) was just completed as a  majorly oversubscribed smashing success that resulted in the deal getting hugely upsized and also priced at the top of the range?
Could it be that the market has rallied TOO MUCH over the last 10 months, and Harrah’s just doesn’t feel like they are offering prospective equity purchasers enough value?  
Could it be that Harrah’s wanted to go back and try to develop some metals and mining businesses to take advantage of the commodity rally?
The S&P is within spitting distance of a 2 year high, asset classes across the globe have surged in an orgy of return chasing, and interest rates remain near multi-year lows.  As far as market conditions, it doesn’t get much better than this.  Yet it still wasn’t good enough to get investors to buy Harrah’s.  That’s a warning sign, to me – or maybe a sign that investors still have some sanity left.
-KD

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