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.
