Is it true that the MGM Grand made a 4.5 Billion offer in the form of stock and cash for the Mirage Hotel & Casino?

Doesn't it bother you just a little bit that something like a monoploy may be happening here?! And I don't mean the Parker Brother's game!

I did read someplace that Mr Wynn would like to concentrate his resources on the Bellagio. Maybe the big chiefs at the MGM read the same story and made an offer that he could not refuse before I had a chance to do the same.

What do you think? Will it happen? Will it be for the good of all? Will it be the trend of the future in Las Vegas?

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will800

Wynn build-it and Wynn will die with it. There is not enough money in the world to get Wynn to part with it.

My understanding is that the offer is for the entirety of Mirage Resorts. The Board of Mirage Resorts will supposedly consider the offer at a future meeting (i.e. they will discuss the various ways they can tell MGM to blow it out their ears).

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Bill in Santa Monica, CA

MGM's offer was $3.23 billion for Mirage Resorts, and it would also assume about $2 billion in Mirage debt. MIR shareholders would be paid $17 a share in cash, or a combination of $7 cash/$10 in MGG stock. Steve Wynn owns 12 percent of Mirage according to SEC filings. Mirage stock rose 33% on the news today. One Prudential analyst thought Mirage would reject the offer (ie, Steve Wynn won't give up control), but Bear Stearns analyst Jason Adler feels it's a fair offer that the Mirage board of directors should seriously consider.

[This message has been edited by DaisyDeuces (edited February 23, 2000).]

Will, just in case you didn't already know, Las Vegas Casinos is already a monopoly!!! What difference does it make, who owns which casino. Their prices at their restaurants and shops will not change. As well, their odds will not change. No offense intended.

Kizzy, Wynn WILL SELL if the price is right. Most likely there are other things he would like to concentrate on....We will see soon enough.

Local news is reporting that "1000's of jobs are at stake if there is a take-over". That is a bunch of crap. If new owners come in, upper management will be the only people fired. Also, when Wynn sells he may take his employees to a new casino...What do you think?

Joe

Here's a possible and realistic scenario!

Steve Wynn will not object to the sale and the offer will be accepted contingent upon Mr. Wynn's right to retain control of the Bellagio and his right to develope additional casino/hotels in Las Vegas.

That's what I would do if I was him and it's free advice for Mr. Wynn.

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will800

Will,
That seems to make sense on Wynn's part, but I'm sure the offer would be less with out the high profile joint and all the high rollers coming along with the deal.

Has the Bel, lived up to the hype? And is it performing as well as expected, would also be my questions, if I was Mr. wynn.

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Lee-PA
Moderator, What's New Forum
lee@talkvegas.com

Lee, take a look at "Mirage results" in the What's New forum....it will give you a pretty good idea of how all the Mirage properties are doing.

Lee,

Good point. I wonder how the Bellagio is doing financially. I have only been there twice, once when it first opened and again about a month ago. Both times it seemed very busy throughout the whole place. I wonder how much actual "economic profit" the Hotel/Casino takes home, after electricity and all the other costs...

Joe

Mirage shareholders sue over MGM takeover
By Grace Leong
<gracel@lasvegassun.com>
LAS VEGAS SUN
Five shareholders of Mirage Resorts Inc. filed class-action lawsuits Wednesday demanding that the interests of public shareholders be preserved as Mirage weighs an unsolicited $5.4 billion takeover offer from MGM Grand Inc.

In a Clark County District Court suit against Mirage and its board members, Crandon Capital Partners said it and other Mirage shareholders have been "deprived of the opportunity to realize fully the benefits of their investment in the company" because of Mirage management decisions.

Crandon Capital said Mirage board members have "wrongfully refused to properly consider a bona fide offer for the company from MGM Grand," thus breaching their fiduciary duty to maximize shareholder value.

Mirage has not rejected the MGM Grand offer, instead it said Wednesday its board would consider the proposal.

But the Crandon suit, filed by attorney Mark Albright, said the defendants "recalcitrance to consider MGM's offer has no valid business purpose and simply evidences their disregard for the attractive premium being offered to Mirage shareholders."

The suit seeks an order requiring Mirage directors to take appropriate steps to enhance Mirage's value as a merger/acquisition candidate, expose Mirage to the marketplace in an effort to create an active auction of the company and act independently so the interests of the shareholders are protected.

Four more shareholders suing Mirage were Janis Zvokel, Naline Yassin, J.M.M. Management Corp. and Richard Ardezzone.

Their suits, also filed by Albright, seek an order to force the Mirage board to disclose the true value of Mirage assets, its full earnings potential and expected increase in profitability. The plaintiffs say they would be deprived of the opportunity to obtain the real value of their holdings without such information.

These shareholders allege the Mirage board members have access to internal financial information about Mirage and are using their positions of power and control to better their interests at the expense of Mirage shareholders.

These shareholders say the Mirage board must act independently so the interests of Mirage public shareholders will be protected. They say the Mirage board must retain independent advisors and appoint a special committee of board members to consider the MGM Grand offer.




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John B.
jblersch@optonline.net

The plot thickens, McBeth! Interesting post, John, Sr.!

Now I understand that other major Las Vegas corporations are interested in siding up to the table to make offers of their own.

This should turn out to be a long and very interesting story and I'm sure that a few major battles will be won and lost along the way.

Stay tuned! News at ten!

Friday 2/18 CNBC reported that Park Place and Harrahs were also "very interested" in the Mirage properties.

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John B.
jblersch@optonline.net