Monday, June 14, 2004 | 8:11 a.m.
MGM Mirage said Monday that the two sides had agreed on "all material terms" of the revised $4.8 billion cash offer after weekend discussions.
Mandalay said in a separate release it hadn't entered an agreement but said the new terms would "offer significantly greater assurances of closing" for its shareholders. It said it would present it to its board on Tuesday.
A deal between the companies would create the largest casino company in the world.
Under the new offer, MGM Mirage would pay $71 per share in cash for Mandalay stock, up from its earlier offer of $68 a share.
MGM Mirage said the cash price represents a 30 percent premium to Mandalay's closing share price June 3, the day before the company's initial offer was made.
In addition to the $4.8 billion in cash, MGM Mirage said it would assume $2.5 billion in debt.
In rejecting the previous bid Friday, Mandalay's president and chief financial officer Glenn Schaeffer said the terms had "asked Mandalay shareholders to bear a far disproportionate share of the risk" of the deal.
MGM Mirage owns or operates 12 casinos in Nevada, New Jersey, Mississippi, Michigan and Australia. Its properties include the MGM Grand Hotel and Casino and Bellagio. Mandalay owns and operates 11 casinos in Nevada, including Luxor and Circus Circus.
A combination of the two companies would give MGM Mirage control of 10 properties on the Las Vegas Strip, owning about half the 73,000 hotel rooms of the world's premier gambling market. With more than $6 billion in revenues, the company would surpass rivals Harrah's Entertainment and Caesars Entertainment.
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