Circus Circus hints at new name

Gary Thompson

Tuesday, April 20, 1999 | 12:05 p.m.

Circus Circus Enterprises Inc. indicated Mandalay Bay will play a prominent role in its long-awaited name change.

In a preliminary proxy statement filed Monday with the Securities & Exchange Commission, Circus said shareholders will be asked to approve several items, including the new name, at its June 17 annual meeting.

The meeting is scheduled for Mandalay Bay, the $950 million, 3,700-room Strip resort the company opened last month.

"By identifying the company with its newest and largest resort, the new name will emphasize the company's ownership and operation of large casino resorts that target a broad range of clientele," the proxy statement said.

Noting the proposed name would relate to the so-called "Masterplan Mile" encompassing Mandalay Bay, Excalibur and Luxor, the statement said "the use of the word (blank) in the name will more effectively identify to persons not personally acquainted with the company the nature of its business as a developer, owner and operator of hotel-casino resorts."

The proxy statement also disclosed that shareholders will vote on three proposals the company opposes.

One proposal, offered by the California Public Employees Retirement System, calls for a majority of Circus board members to be outside directors. CALPERS owns 853,300, or 0.9 percent of Circus' 95.1 million outstanding shares.

CALPERS said Circus' eight-member board is equally split between insiders -- persons directly or indirectly affiliated with the company -- and independent outside directors.

Circus said it considers five directors outsiders, including one -- Donna More -- whose only affiliation is with an Illinois law firm that does some legal work for the company.

A second proposal the company opposes calls for "declassification" of its board. Circus currently has a classified board, with directors serving staggered, multi-year terms that help deter hostile takeovers.

A holder of 300 shares wants Circus to require annual elections of all directors.

Finally, the company asked shareholders to defeat a proposal by the owner of 1,550 shares for a "prompt sale of Circus to the highest bidder." Circus said it doesn't want to encourage an "auction."