Mandalay Approves Merger With MGM Mirage

Stockholders for Mandalay Resort Group meeting in Las Vegas 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 cauti


Stockholders for Mandalay Resort Group meeting in Las Vegas 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 requested information from MGM Mirage regarding the proposed merger. MGM Mirage indicated it is confident that the 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 with 28 properties in five states.

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

MGM Mirage also currently owns the MGM Grand Detroit. Michigan gaming laws prohibit it from owning both the MGM Grand Detroit and Mandalay’s MotorCity. MGM Mirage said recently it is considering selling the MGM Grand Detroit.

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