HARRAH’S Entertainment Inc is buying Caesars Entertainment Inc for about $5.2 billion in cash and stock in a deal that would create the largest gambling company in the world.

Harrah’s Entertainment has taken the Las Vegas gambling industry by surprise by agreeing to buy Caesars Palace owners Caesars Entertainment for more than €4.5bn.

Investors’ growing dread of higher interest rates sent stocks sliding sharply in the United States today, with a solid retail sales report and expectations of higher inflation providing the latest catalyst for a sell-off.

Optimistic investors bid US stocks sharply higher in light trading today, buoyed by the strength of the economy and even ignoring a slight rise in oil prices. The Dow Jones industrial average soared more than 140 points.

MGM Mirage has decided against increasing its £308m (€454m) bid for Wembley PLC in the face of a higher rival offer.

One of the biggest hotel-casinos on the Las Vegas Strip closed and thousands of guests had to check in somewhere else after a main power line failed.

Newcastle today confirmed that manager Bobby Robson has signed a new contract and will remain in charge until the end of the 2004-05 season.

Animal experts have said the mauling of Siegfried & Roy illusionist Roy Horn by a 42-stone tiger was no accident, claiming the animal was going for the jugular.