This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Feds Eye MGM Mirage-Mandalay Union

MGM Mirage's (MGG) merger with Mandalay Resort Group (MBG) will have to hop through another hurdle, after the Federal Trade Commission asked the duo to provide more information related to their $4.8 billion merger deal.

The companies said they would comply promptly with the FTC's second request for information, which was announced Monday morning, and anticipated the deal would close sometime in the first quarter of 2005, in line with its earlier guidance. News of a second request from the FTC is unsurprising, given the size and scope of the transaction, the concentration of properties it would create on the Las Vegas Strip and the consolidation going on in the industry.

All told, the combined companies would own 28 gaming properties, 10 of which can be found on the Las Vegas Strip, giving it near-complete control over a three-mile stretch of properties, concentrated mainly on the city's west side. According to research from UBS, MGM would control 48% of the gaming positions, 46% of the square footage and 49% of the hotel rooms on the Las Vegas Strip.

With so much concentration in one place -- and with Harrah's Entertainment's (HET) planned acquisition of Caesars Entertainment (CZR) creating a rival behemoth -- there are a number of antitrust concerns over both mergers. Already, MGM will have to sell a property in Detroit, where the combined companies would own two casinos, which violates gaming regulations.

More asset sales could be forced as well, depending on how the FTC defines competition. MGM has vowed to keep its properties on the Strip, arguing that the growing market is rife with competitors like Wynn Resorts (WYNN), which will open the 3,500-room Wynn Las Vegas in April 2005, and Sheldon Adelson, who plans to grow his Las Vegas empire beyond the Venetian Hotel & Casino.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs