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Execs Expect Merger to Proceed

LAS VEGAS – As reported by the CBS Marketwatch: "Executives behind the planned Mandalay Resort-MGM Mirage and Caesars Entertainment-Harrah's mergers said Wednesday that the proposed takeovers are unlikely to face deal-stopping regulatory resistance.

"MGM Mirage (MGG) President Jim Murren said the company is currently in 'exhaustive, comprehensive, productive, cooperative and interactive' talks with the Federal Trade Commission on issues including market concentration.

"The $7.6 billion MGM Mirage-Mandalay (MBG) combination, announced in June, would control 33,000 hotel rooms at 10 casinos on the Las Vegas Strip, close to half of the current total.

"…Barely a month after that deal was announced, Harrah's (HET) said it would buy Caesars Entertainment (CZR) for $9.5 billion in cash, stock and assumed debt in a move that would create the world's largest gambling company with holdings from the Strip to the Mississippi Coast to Atlantic City.

"On Wednesday, Harrah's Chief Executive Gary Loveman said the two companies' recent deal to sell four casinos 'may satisfy many of these [regulatory] issues' and he was confident the deal would go through…"

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