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6/6/2004

MGM makes surprise offer for Mandalay

Los Angeles Times

Casino operator MGM Mirage launched a surprise $4.65-billion bid for rival Mandalay Resort Group late Friday — a deal that would put the lion’s share of hotel rooms on the Las Vegas Strip under the control of billionaire financier Kirk Kerkorian.
MGM offered to purchase Mandalay for $68 a share in a cash transaction and assume about $2.8 billion in debt.
Both companies’ properties dominate the Strip, where Mandalay alone has about 15,000 hotel rooms.
Besides its namesake casino, Mandalay also owns the Luxor and Excalibur. It has other properties in Nevada, as well as in three other states.
MGM, which already is the third-largest U.S. gaming company, would outstrip Caesars Entertainment Inc. and Harrah’s Entertainment Inc. to become No. 1 if the deal were consummated.