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Nation/World

Circus Circus Plans Acquisition

Tue., March 21, 1995, midnight

Casino and hotel operator Circus Circus Enterprises Inc. said Monday it has agreed to acquire Gold Strike Resorts for more than $500 million.

The deal will give Circus Circus three new casinos and part of a new resort in Las Vegas.

The value of the deal was based on Circus Circus’ stock price, which shot up $3.62 1/2 in heavy New York Stock Exchange trading to end the day at $28.87 1/2.

Circus Circus will pay 17 million shares of its stock and some $12 million in cash for Gold Strike, and will assume the Jean, Nev.-based company’s debt.

In addition to owning the Las Vegas casinos, Gold Strike holds a 50 percent interest in the Grand Victoria riverboat casino in Elgin, Ill., which is also operates.

It is also involved with Mirage Resorts Inc. in the development of a $300 million, 3,000-room resort on the Las Vegas Strip. Gold Strike owns a 50 percent interest and serves as managing partner of the project, which is scheduled for completion in 1996.



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