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MGM Grand to buy Mirage Resorts for $6.4 billion in cash, debt

LAS VEGAS — MGM Grand Inc., the casino company controlled by billionaire Kirk Kerkorian, agreed to buy Mirage Resorts Inc. for $6.4 billion in cash and assumed debt, creating one of the world's largest casino companies.

MGM Grand said it will pay $21 a share in cash for Mirage and assume about $2 billion in debt.

Mirage, headed by Chairman and Chief Executive Stephen Wynn, last week rejected a $17 a share offer from MGM Grand as too low. MGM Grand said it expects to boost profits from Mirage by eliminating duplicate functions and by buying supplies and services more cheaply as a larger company.

Trading in the shares of both companies was delayed for the news.

Mirage and MGM Grand are both based in Las Vegas.