Mandalay stockholders approve proposed merger with MGM Mirage

LAS VEGAS -- Stockholders for Mandalay Resort Group meeting here Friday approved an agreement that would merge the casino firm, which operates several resorts including the Luxor and the Excalibur, with MGM Mirage.

Mandalay noted that the deal still has to clear government regulatory review. As a result, it cautioned, there can be no assurance as to when or if the merger will be consummated.

In July, the Federal Trade Commission (FTC) requested additional information from MGM Mirage regarding the proposed merger. It was the second time that the FTC had asked for additional information. Nevertheless, MGM Mirage indicated it is confident that transaction will be completed in the first quarter of 2005.

MGM Mirage and Mandalay Resort Group announced plans to merge in June to create a gaming and lodging powerhouse that would encompass28 properties in five states.

Under the merger deal, MGM Mirage would acquire the Mandalay Resort Group for $7.9 billion, including the assumption of $2.5 billion in outstanding debt.

Mandalay Resort Group owns and operates 11 properties in Nevada: Mandalay Bay, Luxor, Excalibur, Circus Circus and Slots-A-Fun in Las Vegas; Circus Circus-Reno; Colorado Belle and Edgewater in Laughlin; Gold Strike and Nevada Landing in Jean and Railroad Pass in Henderson. The company owns Gold Strike, a hotel/casino in Tunica County, Mississippi.

It also owns a 50% interest in Silver Legacy in Reno, and owns a 50% interest in and operates Monte Carlo in Las Vegas. In addition, the company owns a 50% interest in and operates Grand Victoria, a riverboat in Elgin, Illinois, and owns a 53.5% interest in and operates MotorCity in Detroit, Michigan.

MGM Mirage, meanwhile, owns the Bellagio, Boardwalk Hotel & Casino, MGM Grand Las Vegas, the Mirage, the New York-New York and Treasure Island in Las Vegas; Buffalo Bills, Primm Valley and Whiskey Petes in Primm, Nev.; and Beau Rivage in Biloxi, Miss.

MGM Mirage also currently owns the MGM Grand Detroit. Under Michigan gaming laws, it would be prohibited from to owning both the MGM Grand Detroit and Mandalays MotorCity once the merger goes through. MGM Mirage said recently it is considering selling the MGM Grand Detroit.

To contact the reporter who wrote this article, send e-mail to Michael Milligan at [email protected].


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