MGM MIRAGE (MGM-NYSE) is seeing shares down over 10% in pre-market activity after the company has confirmed that Kirk Korkorian’s has changed his mind about the major shareholder Tracinda Corp pursuing an acquisition of the company. Kerkorian had expressed an interest in some of the key Vegas properties last month. Tracinda Corporation advised the Company’s board of directors at yesterday’s regularly scheduled meeting that it had determined not to pursue a possible acquisition of the Bellagio and CityCenter properties in Las Vegas. Pursuant to this withdrawn interest, the board of directors terminated the ‘transactions committee" that had been formed to consider any proposal that Tracinda might choose to make.
Instead of this potential merger, MGM MIRAGE has signed a multi-billion dollar Las Vegas development pact with Kerzner International in a 50/50 joint venture for a behemoth resort property on the las Vegas Strip. The resort will be designed for 40 to 78 acres of land owned by MGM MIRAGE at the corner of Las Vegas Blvd. and Sahara Avenue.
Jon C. Ogg
June 20, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
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