| Mandalay Resort Group (NYSE: MBG (http://www.nyse.com/about/listed/lcddata.html?ticker=MBG)) is a hotel-casino operator based
in Las Vegas, Nevada. Its major properties include Mandalay Bay, Luxor, Excalibur and Circus Circus, as well
as half of the Monte Carlo. In terms of
market capitalization, it is one of the largest casino operators in the world. It was
formerly known as "Circus Circus Enterprises."
On June 4, 2004, one of Mandalay Resort
Group's largest competitors, MGM Mirage, announced a bid to acquire it for $68
per share plus assumption of debt. The stock closed at $60.27 per share on June 4. Although the proposal was announced after the
close of trading on June 4, the volume of trading in Mandalay Resort Group stock on that day was quadruple the normal, with the
stock closing at $60.27 per share. The ensuing negotiations between the two companies included at one point an announcement that
the Mandalay board was rejecting the offer because of antitrust concerns. On June 15,
2004, however, both companies' boards approved a revised offer of $71 per share. The agreement called for MGM Mirage to pay $4.8
billion and to assume $2.5 billion in debt. Because the combined company would control approximately half of the hotel rooms on
the Las Vegas Strip, with a particular concentration in high-end
resorts, analysts expected the Federal Trade
Commission to consider whether to require divestment of one or more Las Vegas properties as a condition for approving the
transaction.
Mandalay Resort Group's common stock is publicly traded on the New York Stock Exchange under the ticker symbol "MBG (http://moneycentral.msn.com/scripts/webquote.dll?iPage=qd&Symbol=MBG)."
The Group also owns the Circus Circus hotel and casino and the Silver Legacy hotel and casino in Reno,
Nevada, the Gold Strike and
Nevada Landing hotels and
casinos in Jean, Nevada, the
Colorado Belle and Edgewater
hotels and casinos in Laughlin, Nevada, the Railroad Pass in Henderson, Nevada, the Gold Strike Resort in Tunica, Mississippi, the Grand Victoria in Elgin, Illinois and the Motor City Casino in Detroit, Michigan.
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