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Bidding Heats Up for MotorCity Casino

DETROIT-Compuware Corp. chairman and chief executive Peter Karmanos Jr. bids $563 million for Mandalay Resort Group's 53.3% stake in MotorCity Casino, topping Marian Ilitch's offer by $38 million.

By Dan Heaton | Updated on March 16, 2005

DETROIT-Competition between the Ilitch and Karmanos families is nothing new. Each supports a large network of youth hockey organizations and each owns a team in the NHL.

The latest competition, however, is not on the ice. Marian Ilitch, whose family owns the Detroit Red Wings, the Detroit Tigers and the Little Caesars pizza chain, has offered Mandalay Resort Group $525 million for its 53.3% stake in MotorCity Casino here. On Tuesday, Peter Karmanos Jr., chairman and chief executive of locally based Compuware Corp. and owner of the NHL’s Carolina Hurricanes, entered a $563-million bid for the Mandalay stake with a partner.

Ilitch already owns 25% of MotorCity Casino and her spokesman says she has signed a deal to buy out the 21.5% stake held by other minority investors. The Detroit casino must be sold because of a pending $7.9-billion merger between gaming giants MGM Mirage and Mandalay Resort Group. MGM already owns the MGM Grand Casino in Detroit and Michigan law requires separate ownership of the three Detroit casinos.

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