Gambling giants betting merger deal will win OK

MGM Mirage Inc. has raised its bid for rival casino operator Mandalay Resort Group only days after its previous offer was rejected as insufficient, pushing ahead with its effort to create the biggest gambling company in the world.

MGM Mirage said Monday the two sides had agreed on “all material terms” of the revised $4.8 billion cash offer after intense weekend discussions.

Mandalay said it hadn’t entered an agreement but said the new terms would “offer significantly greater assurances of closing” for its shareholders. Mandalay will present the revised offer to its board today.

Under the latest offer, MGM Mirage would pay $71 per share in cash for Mandalay stock, up from its earlier offer of $68 a share.

Agriculture

State’s wheat harvest ahead of schedule

Kansas farmers have harvested 15 percent of their wheat crop, but its condition remains below average, according to a new state report.

The Kansas Agricultural Statistics Service reported that the state’s farmers are well ahead of last year’s harvest pace, when only 1 percent of the crop had been harvested at this time. But the service said the quality of the wheat still remained poor compared to last year.

Reports indicate 28 percent of this year’s wheat crop is rated good to excellent, while 53 percent of the crop was good to excellent at this time last year.

Aviation

Boeing wins contract

Boeing Co. has won a $3.9 billion contract for a new U.S. Navy patrol plane, the Pentagon said Monday.

The contract to develop and demonstrate the new plane could lead to Boeing building 109 of the aircraft, said John Lockard, senior vice president/general manager of Boeing Naval Systems.

Boeing was in fierce competition with Lockheed Martin for the contract for the multimission marine planes, which will be used to hunt submarines, maritime patrol and other functions.

Boeing’s entry is based on converting its popular 737 commercial jet for military use.

Kansas City, Mo.

Ford sets price for hybrid

Ford Motor Co. has set a base price of roughly $27,000 for its upcoming 2005 Escape hybrid sport utility vehicle, about $3,300 more than a comparably equipped 2005 Escape powered by a V6 engine.

Ford has said the gasoline-electric hybrid system in the front-wheel-drive Escape allows the vehicle to get 35 to 40 miles per gallon in city driving, compared with 20 miles per gallon in a 2005 Escape with a V6.

The Escape hybrid, which will be built in its Kansas City area plant at Claycomo, Mo., is scheduled to reach showrooms later this summer. It’s the smallest entry in Ford’s SUV lineup. An Escape hybrid with four-wheel drive will start at $1,500 more than the front-wheel-drive version.