MGM’s Offer Stands at $68

MGM Mirage’s offer to buy Mandalay Resort Group, including its prized properties on the coveted Las Vegas Strip, remains at $68 a share for the entire company despite analysts’ speculation the price could rise dramatically.

“The $68 bid was made after intensive talks, diligent research and fruitful discussions,” said a person close to the negotiations. “The $68 offer on the table is very clear and in black and white.”

Some Wall Street analysts had speculated that the offer price could go as high as $80, believing the $68-a-share offer was just a starting point.

Since the friendly but unsolicited offer of $4.85 billion in cash and the assumption of $2.8 billion in Mandalay debt was disclosed Friday, Mandalay’s stock price had surged to more than $70.

On Wednesday, Mandalay’s stock dropped to $68.58, down $1.12, and so did analyst expectations. MGM Mirage’s stock was at $47.52, dipping 47 cents.

Marc Falcone, a Deutsche Bank gambling analyst in New York, said the offer might not get much higher now that gambling companies such as Harrah’s Entertainment Inc. and Caesars Entertainment Inc. declined to get into a bidding war.

“At this point, given that there appear to be no other viable buyers, we see little reason to believe that the offer price moves much higher” if at all, said Falcone, who had said the price would be in the $72-to-$75 range.

MGM Mirage said the offer would expire Friday at 5 p.m. A Tuesday deadline was extended.

The proposed deal would create the world’s largest gambling company, owning about half the hotel rooms on the Strip.