|Progress in the now long-running saga of the Mandalay and MGM Mirage merger was made yesterday. MGM Mirage has let it be known that they have now agreed with Mandaly Resort Group on the basic prices of shares that would enable the deal to move forward. MGM Mirage have increased their offer by US$3/share since their rejected offer last week, making the current of US$71/share a total of US$7.9 billion.|
The offer will be considered early next week by the Mandaly board, and a spokesperson did comment that there were 'no assurances that a definitive agreement will be reached.'
Also in this new offer is the dropping of one of the terms of agreement believed to have had a significant influence on the rejection of Friday’s last offer. In that offer MGM Mirage stated that it would be Mandalay’s shareholders who would be responsible for the risk that regulators may cancel the deal, or alternatively demand the divesting of major assets held by the company due to antitrust law.
The renewed pitch takes away the existing 15-month opt out option for MGM Mirage while regulators decided if assets were required to be sold. The renewed offer is said to swing responsibility should such actions be required back towards MGM Mirage’s shareholders.
Should the deal finally take place, the merger would be the biggest yet in the casino industry, creating 29 casinos across several states. Revenue wise the merged company could boast upwards of US$3 billion more than its closest rivals Harrah’s Entertainment Inc and Ceasar’s Entertainment Inc, with a combined annual total of US$7.5 billion.