Observers await completion of Mandalay deal
By abigail
Speculation has been surrounding the announced merging of Mandalay Resort Group with MGM mirage, as the 5pm deadline (8 June) neared. As officials from both companies were in talks and not available for comment, observers of the merger focused on the uncertainties of the bid, as they wondered what the ultimate outcome would be.

The perceived uncertainties have been narrowed down to relying on several unknown factors. One being whether Mandalay were actually interested in being sold, another as to whether another company may make a last minute bid. It is also unknown how MGM mirage’s main shareholder Kirk Kerkorian would manage the resulting $7 billion from the merger, as well as being unclear on how he actually planned to fund the deal. Another point of debate was whether regulators would enforce the merged companies to sell their key assets, mainly based on the Las Vegas strip.

Share prices for Mandalay fell 46 cents in yesterday’s trading after an rise earlier in the week on the back of the initial announcement, a possible reflection of this speculation. MGM Mirage’s shares inverted this trend, climbing yesterday (up$1.04) after falling earlier in the week.

A report in Tuesday’s Wall Street Journal predicted that the deal will fall apart, although other analysts do expect that ultimately the deal will go through. The debate as to what will come of this potentially significant merger will continue on until details are finally released of the ultimate decision.

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