Don't expect the deal to go through. At least Harrah's Had a top notch brand name-it wasn't just a third tier racetrack,downscale Casino Operator. Look to see Penn hit the $40 range then drop to perhaps $35.
As soon as someone starts bashing a stock based on issues like brand names, using adjectives like third-tier... blah blah.... it is obvious their analysis is not objective or informed in any way. The company is making money, is profitable, is bringing in new talent to run things, who cares if not a brand name like Harrah's.
Banks and investors look at balance sheets, not brand names where money is involved.
If FIG does not want to back out yet the banks don't finance despite their letters of commitments, doesn't that mean FIG can sue Wachovia and Deutsche for $200 mio? The chances for getting the money would be extremely high as they are not a US bank..
In the end neither Wachovia (relatively unaffected by subprime losses) nor Deutsche will have any will/possibility to not finance.