The hedge fund manager is turning a distressed bond bet into a big stake in Harrah's.
John Paulson, the hedge fund manager who became a billionaire by betting on the subprime bust, took a 9.9% stake Friday in Harrah's, the casino operator that has been staggering under massive debts incurred two years ago in a private equity buyout.
Under the agreement, Harrah's will sell new debt at a 33% discount to Paulson (right) and the Las MORE