MGM Mirage (NYSE:MGM) moved up almost 10% today after receiving a $825 million
tender offer
for 15,000,000 shares at $55/share from billionaire investor Kirk
Kerkorian's Tracinda Corporation. The move would up Tracinda's stake
from 56.3% to 61.7% with over 173 million shares. MGM Mirage owns the
MGM Grand, Luxor, Bellagio and other casinos in Las
Vegas along with gaming properties in other Nevada cities and Atlantic
City. The moves comes as the entertainment industry has been witnessing
increased M&A activity after Harrah's private equity takeover.
According to the
SC TO-C
filing by Tracinda: "This tender offer demonstrates our confidence in
MGM MIRAGE and its management and our commitment to the company’s
future." While the transaction has yet to be completed, this move does
strengthen confidence in the company's future given the billionaire
investor was willing to tender these shares at a 12% premium to the
going market price. Moreover, in an industry where there has been so
much M&A activity lately, we can't rule out the possibility of a
buyout or transaction that reward shareholders. Combined, these facts
make MGM a stock to keep a
close eye on.
Related Companies
Harrah's Entertainment, Inc. (HET)
Las Vegas Sands Corp. (LVS)
Aztar Corporation (AZR)