MGM Grand chairman Lanni returns to full-time post

David Strow

Thursday, April 6, 2000 | 10:59 a.m.

J. Terrence Lanni is returning as the full-time chairman of MGM Grand Inc., lured back by the company's potential as it prepares to acquire Mirage Resorts Inc. for $6.7 billion.

Separately, MGM Grand announced that Mirage Resorts Chief Financial Officer Bobby Baldwin will succeed Steve Wynn as president and CEO of Mirage Resorts once it becomes a subsidiary of MGM Grand.

Lanni will assume a "full-time executive capacity" with the company, but will not re-assume the CEO's position, which is now jointly held by John Redmond and Dan Wade. Lanni announced in October 1999 that he was leaving his full-time post to spend more time with his family, but retained his position as non-executive chairman.

"I never left," Lanni said. "It wasn't as if I stepped down altogether. This just affords me the opportunity to be more involved and properly meet my family obligations.

"(Travel) is part of my life. My family understands that, and that works well for us."

Lanni will oversee the combined company from his position. Redmond, Wade, Baldwin and MGM Grand President Jim Murren will report directly to him.

Lanni pointed to the pending acquisition of Mirage Resorts as one of the biggest factors in spurring his return.

"The executive committee and the largest shareholder (Kirk Kerkorian) are very persuasive people," Lanni said. "(MGM Grand) was always an exciting company, but it's an even more exciting company than it was before."

One industry analyst called Lanni's return "a real positive for the company," citing Lanni's role in MGM Grand's acquisition of Primadonna Resorts Inc.

"That was one of the most successful acquisitions in the industry," said Deutsche Banc Alex. Brown's Robin Farley. "MGM has a big task ahead of it. Eliminating $150 million in expenses in no small feat. Having the full-time (efforts) of Terry Lanni will be a big positive."

More surprising to some was the appointment of Baldwin as Wynn's successor, as many on Wall Street expected Baldwin's departure when the transaction closed.

But MGM Grand made it clear to Baldwin that it needed his experience as it tried to absorb Mirage Resorts, Murren said.

"It was a no-brainer from our standpoint to ask him to join, and we're fortunate that he wants to," Murren said.

"(Baldwin's) desire to stay is the best indication anyone could have about how smoothly this transition will proceed," said Mirage spokesman Alan Feldman on behalf of Baldwin.