Kirk Kerkorian Wants MGM PropertiesAlready owning a controlling 56% stake in MGM Mirage, the 90 year old billionaire real estate investor, Kirk Kerkorian, and his trade group, Tracinda Corp., disclosed Monday in a Securities and Exchange Commission filing that it wanted to start negotiations to purchase the upscale Bellagio casino-resort and the CityCenter property, where work is underway for the nation's largest privately financed project.
Kerkorian's investment arm said the purchase would be part of a strategic restructuring of its holdings in MGM Mirage, which owns roughly half of the Strip, including such signature properties as the MGM Grand, Mandalay Bay, Mirage and New York New York. It operates 23 casino-resorts worldwide, according to the LA Times.
"Kerkorian, who turns 90 next month, has long bedeviled investors with his moves on his way to earning a fortune that Forbes magazine estimates at $15 billion. Speculation about the motives for his overtures included wanting to put MGM Mirage in play or prodding it to go private.
"A formal bid could come as early as today during a meeting of directors at MGM's annual meeting of shareholders."
MGM Mirage shares soared 16% to $73.01 in after-hours trading Monday and the announcement helped fuel a rise in shares of other gaming companies.
Kerkorian has long operated through Beverly Hills-based Tracinda, a meshing of the names of daughters Tracy and Linda. If his past deals are any indication, he is unlikely to hold on to the properties for long.
He has made a fortune buying and selling assets, including the Desert Inn and the Sands casino resorts in Las Vegas. In Hollywood, Kerkorian owned the fabled MGM studio three separate times.
The Bellagio was purchased by MGM in 2000 for $4.4 billion after famed Vegas developer opened the first class hotel in 1998.
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Gambling911.com News Wire
Originally published May 22, 2007 8:43 am ET
