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.

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