LAS VEGAS, Feb. 23, 2000
- MGM Grand, Inc. (NYSE: MGG) announced today it has filed a Form 8-K with
the Securities and Exchange Commission. The Form 8-K incorporates by reference
a letter sent by the Company to the Chairman of the Board of Mirage Resorts,
Incorporated, a copy of which is attached hereto.
| February 23, 2000
Mr. Stephen A. Wynn
Chairman of the Board
President and Chief Executive Officer
Mirage Resorts, Incorporated
3600 Las Vegas Blvd.
Las Vegas, NV 89109
Dear Steve:
On behalf of the Board of Directors of MGM Grand,
Inc., our Company is offering to acquire the stock of Mirage Resorts, Incorporated
for $17 per share. Each of your shareholders can choose to receive the
consideration either all in cash, or a combination of $7 cash per share
and MGM Grand, Inc. stock valued at $10 per share based on today’s closing
price of $40 3/8. This offer would provide your shareholders with more
than a 56 percent premium over the closing share price of $10 7/8 on February
22, 2000.
It is our intention that the Board of Directors
of the combined entity would consist of all the current members of both
Boards.
In addition to providing your shareholders with
an immediate significant premium for their shares, we strongly believe
that the revenue enhancement and cost reduction opportunities arising out
of this combination would create a significant increase in the value of
the stock of the combined company. Beyond the compelling economics, we
believe that the combined entity would be the undisputed leader in our
industry by any measure. We want you to know that neither MGM Grand,
Inc. nor its principal shareholder currently own any shares of Mirage Resorts,
Incorporated and that it is our intention that this powerful combination
be accomplished on a friendly basis. Our offer, which is subject only to
standard governmental and corporate approvals and to the negotiation of
a definitive agreement, will expire at 5:00 p.m. PST on March 8, 2000.
We look forward to hearing from you.
Sincerely,
J. Terrence Lanni
Chairman of the Board
SOURCE MGM Grand, Inc. |
MGM Grand, Inc. is an entertainment, hotel and
gaming company headquartered in Las Vegas, Nevada. MGM Grand, Inc. owns
and operates: the MGM Grand Hotel and Casino—The City of Entertainment
and New York—New York Hotel and Casino both located in Las Vegas; Whiskey
Pete’s, Buffalo Bill’s and the Primm Valley Resort in Primm, Nevada; the
MGM Grand Detroit Casino in Detroit, Michigan; the MGM Grand Hotel and
Casino in Darwin, Australia; manages casinos in Nelspruit, Witbank and
Johannesburg, Republic of South Africa; and owns two championship golf
courses at the California/Nevada stateline. MGM Grand is in the early stages
of developing a permanent hotel and casino complex in Detroit, Michigan.
The Company also has announced plans to develop a hotel and casino resort
in Atlantic City, New Jersey.
Statements in this release which are not historical
facts are “forward looking” statements and “safe harbor statements” under
the Private Securities Litigation Reform Act of 1995 that involve risks
and/or uncertainties, including risks and/or uncertainties as described
in the Company’s public filings with the Securities and Exchange Commission. |