Maverick wins Mandalay bid


Even Las Vegas odds makers didn't see this one coming. A surprise $7.6 billion bid for the Mandalay Resort Group by Kirk Kerkorian's MGM Mirage unleashed massive shockwaves in June markets, proving a surprise win for equity holders, while utterly hammering many funds that were caught sitting on the target company's convertible bonds.

As word of the biggest buyout in Las Vegas history hit the street, Mandalay's common stock surged and the convertible dropped 20% on the day. On the convert side, some hedge funds holding the Mandalay floating-point convertible bond were walloped thanks to what was announced as