Mergers Raise Concern

16 Jul 2004

LAs VEGAS – As reported by the New York Times: "Harrah's Entertainment has agreed to buy Caesars Entertainment for more than $US5 billion.

"…The deal, which comes less than a month after MGM Mirage announced plans to acquire the Mandalay Resort Group, would create the world's largest hotel and casino company - surpassing a combined MGM-Mandalay - as the industry's top four rivals consolidate into two.

"But now, Las Vegas is poised to draw the intense interest of antitrust regulators.

"…Although it has always been expected that regulators would examine MGM's deal with Mandalay, which would give the combined company control of more than half the Las Vegas Strip, many legal experts had predicted the transaction would be approved without much of a fight. But the addition of a Harrah's-Caesars deal for regulators to consider will probably make the process much more difficult.

"At issue will be whether the mergers would stifle competition in Las Vegas and around the US, giving the combined companies too much influence over everything from hotel rates to how to reward high rollers…"

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	Mergers Raise Concern 16 Jul 2004 <a href='https://ad.casinocity.com/adclick.php?n=a21efcd1'><img src='https://ad.casinocity.com/adview.php?what=-site:vendors/width:250/RON&n=a21efcd1' border='0' alt='' /></a> LAs VEGAS – As reported by the New York Times: "Harrah's Entertainment has agreed to buy Caesars Entertainment for more than $US5 billion. "…The deal, which comes less than a month after MGM Mirage announced plans to acquire the Mandalay Resort Group, would create the world's largest hotel and casino company - surpassing a combined MGM-Mandalay - as the industry's top four rivals consolidate into two. "But now, Las Vegas is poised to draw the intense interest of antitrust regulators. "…Although it has always been expected that regulators would examine MGM's deal with Mandalay, which would give the combined company control of more than half the Las Vegas Strip, many legal experts had predicted the transaction would be approved without much of a fight. But the addition of a Harrah's-Caesars deal for regulators to consider will probably make the process much more difficult. "At issue will be whether the mergers would stifle competition in Las Vegas and around the US, giving the combined companies too much influence over everything from hotel rates to how to reward high rollers…"