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Attack of The Revenge of The Living Dead Mirage Sale Rumors

By Chuckmonster on Wednesday, 22nd April 2009 2:39pm
  » filed under Mergers & Acquisitions  comments: 6


According to the New York Post - one of the most reliable of business publications - Tuesday is decision day at MGM Mirage.

The question: sell one or more of its non-core assets - Beau Rivage, Gold Strike and MGM Grand Detroit - or unload the Mirage, presumably to Penn National Gaming.

The proposed plan would have the casino chain [PNG] buy The Mirage by making a down payment, and then finance the rest by having the banks transfer some of their MGM Mirage loans to the casino. This loan would then become secured debt, said a source with direct knowledge of the situation.

That sure is a lot of information for a 'source with direct knowledge of the situation' to divulge. My money says someone at Morgan Stanley has a case of Cantkeepasecretitis.

Update: BrianFey's comment reminded me that I forgot to append a link to Bloomberg's piece on Penn National Gaming stalking Vegas properties. PNG seems to want something for nothing, and isn't offering too much leeway in negotiations.



Comments & Discussion:

I actually wouldn't be surprised if it's a package deal with Penn National. Perhaps selling MGM Grand Detroit alongside the Mirage. Now whether Penn National is looking for additional Mississippi properties, who knows?

I wouldn't be so quick to jump to the conclusion that Penn is the buyer. They possibly could be, but I think in the end, their greed will get the best of them. Penn is looking to steal a property, their bid was no where even close on TI, to what Phil paid, and he paid a very good price. Its clear they are trying to buy first class properties for pennies on the dollar. Wynn Resorts has been making some very odd moves in terms of their finances over the last few days, moves that were not necessary for a company with $1.3 billion in cash on its balance sheet. One reason for this move, might be for Wynn to help out MGM, and take something like Mirage off their hands for a fair price. In my mind $1.5 Billion'ish would be a fair price for Mirage, considering all of their land. Wynn and Phil Ruffin get alone well also, and since whoever ownes Mirage will need to deal with the owners of TI on a very regular basis, due to the tram and shared parking structure, this would be another positive. Mirage would also give Wynn a substantial parcel of land, (most of which is already developed) and a large Events Center, which he could have some use for. I think Wynn is fair and reasonable, and would be willing to pay a more fair price, vs Penn, who is trying to steal properties. If the economy recovers in the near term, its Penn gaming who may find themselves being left out in the cold, when it comes to owning a major Strip property, because their greed got the best of them. They can try to play Harrah's against MGM, but lets face it, Harrahs does not have many desirable properties on the Strip. They won't sell CP, and Penn can't afford that anyhow. Paris is about all they have worth owning on the Strip, anything else would require substantial work and money to renovate. Boyd has money also, so there are a number of possibilities as to who the buyer could be.


I'll just buy it. How much do they want and who do I make the check out to? Right now I've only got, $1.5B in my bank account, so anything anymore than that is just to much.
I'll only buy the hotel if I can be an "inactive" owner, meaning, everyone else does all the work and I get all the money.

RockChick, I like the way you operate. Got any monay?

As someone who lives and works at the BEAU in MS,I would rather the Mirage be sold.Even tho things have been a little tight here at the Beau lately,I am happy to be with Mgm and Kerkorian.Alot of people I work with are frustrated and would like to see us sold especially to Wynn.I came right after he sold,but have heard forever how great he is and people feel he is the answer to all of our troubles.I'm going to say I'm an optimist ,no bankrupt.,no takeover by Ichan,and we get to stay with Mgm and Kerkorian.

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