Mandalay Resort Group

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Mandalay Resort Group was a hotel-casino operator based in Las Vegas, Nevada. Its major properties included Mandalay Bay, Luxor, Excalibur and Circus Circus, as well as half of the Monte Carlo. In terms of market capitalization, it was one of the largest casino operators in the world. It was formerly known as Circus Circus Enterprises. Its stock traded on the New York Stock Exchange with the ticker symbol "MBG".

[edit] History

On March 20, 1995, Circus Circus Enterprises announced that it had agreed to acquire Gold Strike Resorts, a closely held budget casino owner and operator, in a deal valued at more than $600 million.^[1] At the time of the acquisition Jean, Nevada based Gold Strike Resorts owned the Gold Strike Hotel and Gambling Hall, Nevada Landing Hotel and Casino, and Railroad Pass Hotel and Casino.^[2]

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. The transaction was completed on April 26, 2005 for $7.9 billion.