MGM MIRAGE announced today
that it was considering various strategic alternatives in connection with
operations in Detroit, Michigan. MGM MIRAGE currently operates, with local
partners, the MGM Grand Detroit Casino. As part of its pending merger with
Mandalay Resort Group , which is expected to close in the first quarter of
2005, MGM MIRAGE would acquire a 53.5% indirect interest in the MotorCity
Casino, also in Detroit. Under Michigan law, MGM MIRAGE would be unable to
keep both properties. “MGM Grand Detroit and MotorCity are both great properties with
consistently strong operating results and terrific growth prospects,” said
Terry Lanni, Chairman and Chief Executive Officer of MGM MIRAGE. “We
initially expected that we would dispose of Mandalay’s majority interest
in MotorCity. However, since making that initial determination we have
been approached by several parties concerning the possible sale of MGM
Grand Detroit and we have decided to explore this alternative. If such a
transaction were to occur, we would maintain Mandalay’s interest in
MotorCity and look forward to working closely with Mandalay’s partners and
the City of Detroit to develop and enhance that property.”
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