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Detroit Businessman Enters Bid for MotorCity

DETROIT, Michigan – As reported by the Detroit Free Press: "A last-minute bid by Peter Karmanos Jr. and another Detroit businessman for a controlling interest in MotorCity Casino is unlikely to derail Marian Ilitch from winning, officials said late Tuesday.

"The eleventh-hour, $563-million offer by Karmanos and real estate entrepreneur Herb Strather outbids Marian Ilitch by $38 million for a controlling interest in MotorCity Casino, which represents one-third of Detroit's $1-billion gambling market.

"The move came the same day Ilitch announced a deal to buy out minority partners and grab a 46.5-percent interest as she continues negotiating for the 53.5-percent piece owned by Mandalay Resort Group Inc. for $525 million. Ilitch owns 25 percent of MotorCity and businessman Tom Celani owns 10 percent.

"…Bringing Karmanos into the deal could kick up old rivalries with Marian's husband, Mike Ilitch, who owns the Detroit Tigers, Detroit Red Wings and the Little Caesars pizza chain. Ilitch's Wings and Karmanos' Carolina Hurricanes played for the NHL's 2002 Stanley Cup, which Detroit won. The pair also clashed in 1998 when Karmanos made an offer to Red Wings star Sergei Fedorov, which forced Ilitch to sign a fat, $38-million contract with the player.

"…Industry observers said Tuesday it is unlikely that Karmanos and Strather could upset Ilitch's offer for MotorCity since neither of them holds state gaming licenses, and it could take six to 18 months to get approved by the Michigan Gaming Control Board…"

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