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Kerkorian Bets on Bellagio

Billionaire who controls MGM Mirage makes bid for its two hottest assetsi

By J. Kelman,  Newser User

Posted May 22, 2007 2:54 PM CDT
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(Newser) – Activist investor Kirk Kerkorian, who holds a controlling interest in MGM Mirage, is making a play to buy two of the casino company's crown jewels. Kerkorian's company, Tracinda Corp., is in talks to acquire MGM's Bellagio Casino and the $7.4 billion CityCenter development, currently under construction. Kerkorian currently owns 56% of MGM Mirage.

The offer may presage a larger strategy to take the company private. Or it may just be a brilliant—if slightly untoward—profit generator, says Keith Hahn at Dealbreaker.com. "He’s making a bid for his own assets, and causing the stock of the public company to skyrocket in price," Hahn writes. Kerkorian’s MGM shares are up $2.5 billion since yesterday. "It stinks of an inside deal," one analyst tells the Wall Street Journal.

Dancing fountains in front of the Bellagio are one of the favorite, and free, attractions in Las Vegas, Nevada.
Dancing fountains in front of the Bellagio are one of the favorite, and free, attractions in Las Vegas, Nevada.   (KRT Photos)
The Bellagio's nightly water show in Las Vegas, Nevada.
The Bellagio's nightly water show in Las Vegas, Nevada.   (KRT Photos)
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WSJ: Move "put the entire company in play"
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Shares jump on Kerkorian news
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DealBreaker: "Kerkorian personally directing the Ocean's 14 swindle"
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private equity • Kirk Kerkorian • investors • Bellagio • MGM Mirage • Tracinda Corp. • privatization • CityCenter

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