Harrah’s a bystander in MGM Grand offer to buy Mirage Resorts

Thursday, Feb. 24, 2000 | 3:38 a.m.

While Harrah's Entertainment is interested in consolidations, a company spokesman say it's more of a "bystander" in MGM Grand's $3.5 billion offer to buy Mirage Resorts.

"We said on several occasion that we believe the industry needs to consolidate," a statement from Harrah's spokesman Gary Thompson said Wednesday. "We have been a leader in industry consolidation and continue to be interested in strategic consolidations that add value for our stockholders."

While the statement could be seen as a sign of interest in a deal to keep Mirage Resorts from MGM Grand's control, Thompson said Thursday: "We're kind of bystanders in what that is right now, so we don't have any other comment."

MGM Grand, buoyed by record earnings, made an unsolicited offer Wednesday to buy Mirage Resorts for $3.5 billion in cash and stocks. The offer was 56 percent higher than the market value of Mirage and also included the assumption of $2 billion in debt.

Mirage owns Beau Rivage on the Mississippi Gulf Coast.

Casino analysts said the deal is so rich that it could discourage any other bidders.

"I don't see anybody else coming up right now," said Jason Ader of Bear, Stearns & Co. "Harrah's and Park Place have their plates full."

Mirage said the deal would be considered by the company's board of directors in the near future. Mirage spokesman Alan Feldman said Thursday the company will not release the date of the meeting.

Meanwhile, less than four hours after MGM Grand's offer, five Mirage shareholders filed class action lawsuits in an effort to get the highest possible price for their stock.

Attorneys for the plaintiffs say they filed the lawsuits against Mirage, Chairman and Chief Executive Steve Wynn and six board members as a preemptive strike to force the Mirage to act in the best interests of shareholders by seriously considering the MGM offer and other potential offers.