|MGM Mirage on Friday tabled a takeover bid of $4.85bn for rival Mandalay Resort Group, which if successful would leave MGM as the dominant player in the US casino market. MGM and Mandalay are two of the ‘big four’ casino groups in the US, the other two being Harrah’s and Caesars. |
Mandalay is considering the offer, which would give MGM interests in many landmark Las Vegas casinos including the Luxor, the Excalibur and the Monte Carlo. Mandalay properties in Mississippi, Michigan and Illinois would also be part of the deal. MGM Mirage’s existing properties include the Bellagio, the MGM Grand and the MGM Mirage.
The unsolicited bid is equivalent to $68 per share, 13% above Mandalay’s closing price of $60.27 per share. MGM would take on approximately $2.8 billion of Mandalay’s debt as part of the deal.
'The combination of these two great companies would provide Mandalay shareholders with a premium price for their shares as well as providing several strategic benefits to shareholders in MGM Mirage,' MGM chairman and chief executive Terry Lanni said.
Mandalay issued a statement saying the company 'has received and will carefully evaluate the proposal from MGM Mirage and will respond to MGM Mirage in due course.'
Kirk Kerkorian, the billionaire businessman, owns about 57% of MGM Mirage shares.