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The Honolulu Advertiser
Posted on: Monday, April 7, 2008

Slovenia resort plans halted

Associated Press

LAS VEGAS — Gambling giant Harrah's Entertainment Inc. and a casino operator have suspended plans for a $1.2 billion resort in Nova Gorica, Slovenia, the parties said.

Harrah's was unable to reach an agreement on a management contract with the Slovenia-based Hit Group, said Jan Jones, Harrah's senior vice president of communications and government relations.

"We tried hard, as did they, to try to find a structure that gave both sides comfort under Slovenian law," Jones told the Las Vegas Review-Journal last week. "We just couldn't get there."

Hit Group released a statement saying, "it was not possible to find a management structure that would fulfill the interest of the Hit Group ... and granting (Harrah's) expected influence in the new joint company."

Harrah's also recently withdrew from a proposed $2.6 billion resort project in the Bahamas. Harrah's had a 43 percent interest in a joint venture with Baha Mar Resorts Ltd. and Starwood Hotels & Resorts Worldwide to develop a six-hotel, mixed-use resort.

Although Harrah's is no longer interested in the Bahamas project, Jones said the company may still pursue a management agreement in Slovenia.

Harrah's was bought for $17.7 billion by private-equity firms TPG Capital and Apollo Management late last year.