A Native American tribe emerged today as the surprise winner in the billion-dollar auction of the world- famous Hard Rock Cafe business.

The Seminole tribe of Florida has agreed to pay é490m in a deal believed to represent the first purchase of a major international company by a Native American Indian tribe.

The Seminole tribe currently derives 90 per cent of its revenues from gaming but said the acquisition of 124 Hard Rock Cafes and seven hotels and casinos would offer the diversification sought by its Tribal Council.

The first Hard Rock Cafe opened in London in 1971. Beginning with an Eric Clapton guitar, Hard Rock owns the world's largest collection of music memorabilia, which is displayed at its locations around the world.

The Hard Rock business is being sold by Rank as part of its efforts to focus on gaming, including Mecca Bingo and its Blue Square online betting arm.

Rival

The Seminole tribe is believed to have fought off interest in Hard Rock from three rival bidders, including the leading private equity firm Permira.

The tribe already runs two Hard Rock branded casinos in Hollywood and Tampa and has four other Seminole branded sites.

The casinos support a growing infrastructure for the Seminole community's health and welfare, public safety, education and other services.

According to its website, the economic stability provided by gaming, combined with cattle, citrus and other business enterprises, has made it one of the most successful native business peoples in the US.

They employ more than 7,000 employees in casinos, hotels and other enterprises.

Seminole tribe chairman Mitchell Cypress said: "This is a proud moment for the Seminole tribe of Florida and for all Indian tribes.

"It is also an opportunity for the Seminole tribe to diversify its business operations and help a very successful company to achieve even greater growth."

The tribe expects to fund the purchase price from a combination of debt issued by a new Hard Rock operating company and funding from its gaming division.

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