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MGM Wants All Las Vegas Casinos in Merger
MGM Mirage on Wednesday
said it planned to keep all its Las Vegas resorts after taking over
rival Mandalay Resort Group and would not slow down on other expansion
plans because of the deal, which will make it the world’s largest casino
MGM will own 28 properties that take in roughly $6.5 billion annually —
if Mandalay shareholders and regulators approve the $4.8 billion
acquisition — agreed to by both companies’ boards on Tuesday.
Controlled by Las Vegas resort pioneer Kirk Kerkorian, an 87-year-old
billionaire, MGM is making its second $4-billion- plus deal in four
years. MGM is building a string of 10 major properties on the Las Vegas
Strip ,with about half the Strip’s hotel rooms, which is sure to draw
Executives plan to close the deal by the end of the first quarter of
2005. And MGM is still considering plans to expand in Atlantic City,
Britain and Singapore, among other regions.
"We expect to be a major player in the United Kingdom," Chief Executive
Terry Lanni said on a conference call, adding that MGM would not slow
down Atlantic City plans, either.
Chief Financial Officer Jim Murren said the combined company would
generate about $2 billion in cash flow and would use that to fund
expansion and reduce debt, with paying a dividend a third priority.
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2004 Online Casino News Archive