Kerkorkian Hedges Bets on MGM

Billionaire investor withdraws offer for casino properties
By J. Kelman,  Newser User
Posted Jun 20, 2007 9:13 AM CDT
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(Newser) – Mega-investor Kirk Kerkorian has withdrawn his intended bid for two of MGM Mirage's showcase properties. Kerkorian, who owns a 56% stake in the company, pulled his preannounced offer on news of a multi-billion dollar development deal between MGM and South African casino giant Kerzner International to develop a new property on the Strip. 

Kerkorian threw MGM into play after indicating last month that he was interested in purchasing two of the company's most prized properties, the Bellagio and the $7.4 bilion Project CityCenter. Shares had soared 27% on the possible offer; speculation about Kerkorian's withdrawal sent MGM's stock down nearly $10, to $77.50, in pre-bell trading.