Kirk Kerkorian's Tracinda Sells 20 Million Shares In MGM Resorts -Source
17 Agosto 2011 - 8:35PM
Dow Jones News
MGM Resorts International (MGM) founder Kirk Kerkorian on
Wednesday completed the sale of 20 million shares in the gaming
giant, according to a person with knowledge of the situation
Wednesday.
The move continues an ongoing, yet slow movement by the
94-year-old and one-time majority shareholder to distance himself
from the casino company he developed into a giant force on the Las
Vegas Strip through building and acquisitions.
After the sale, Kerkorian's stake via his private investment
company, Tracinda Corp., will drop from 27% to about 22%, or 111
million shares of MGM. Based on Wednesday's closing price of $11.54
a share, the sale was worth about $230.8 million. A representative
from Tracinda couldn't immediately comment on the matter, and a MGM
Resorts spokesperson couldn't be reached for comment.
The company's stock dropped 5.72% to $10.88 a share in
after-market trading.
Kerkorian said in January that he "saw substantial value in the
assets of MGM Resorts" but might explore potential transactions and
a few months later, he stepped down from the board.
Kerkorian was MGM's controlling shareholder until a stock
offering in 2009. Late last year, Tracinda participated in a
company offering and pared its stake by about 32 million shares,
securing a roughly $400 million profit.
The billionaire investor's stake was worth nearly $15 billion
when the company's stock was at an all-time high in late 2007. Then
in early 2009--when Wall Street worried that its expensive
CityCenter project coupled with a brutal downturn would drag the
company into bankruptcy--the stake was only worth about $300
million.
MGM Resorts is slowly emerging from the economic downturn that
curbed visits to its casino resorts and recently reported in its
second-quarter earnings signs of improvement.
-By Alexandra Berzon and A.D. Pruitt, Dow Jones Newswires;
212-416-2197; angela.pruitt@dowjones.com
--Maxwell Murphy contributed to this article.
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