In their search for undervalued firms, Apollo Management and the Texas Pacific Group have arrived at the foot of the gambling industry: They have offered to buy Harrah's for $15 billion in cash, or $81 a share. The surprise offer prompted the board to hire UBS and Kaye Scholer to advise it on offers. Many think a competing bid might emerge, perhaps featuring other private equity players. A bidding war among the powerhouses, despite genteel traditions, seems inevitable somehow. The targets are that few. Then again, the licensing issues are tricky--they may keep competitors at bay.

For more on the deal:
- Here's a New York Times article