Dubai World Gambles On MGM

30.12.2007, Lesen Sie hier den Bericht über «Dubai World Gambles On MGM».

Melanie Lindner, www.forbes.com

Dubai World is raising its bet on MGM Mirage.

Dubai World, the investment arm of the Dubai government, announced on Friday that it has increased its stake in the Las Vegas-based casino operator, MGM Mirage (nyse: MGM - news - people ). In a filing with the U.S. Securities and Exchange Commission, the government-owned investment firm stated that it purchased 5.0 million shares of MGM's stock from the Lincy Foundation, a charity founded by billionaire investor Kirk Kerkorian.

Kerkorian, the seventh-richest American, is the chairman of Tracinda, which holds more than 51.0% of MGM Mirage's shares.

MGM ticked up 81 cents, or 1.0%, to $85.06, in Friday trading.

According to the SEC filing, Dubai purchased the shares from Lincy on Monday for $424.0 million, or $84.80 per share. MGM's Dubai World also said in the SEC filing that it intends to nominate a director to the MGM board of directors pending authorizations from gaming authorities.

With the additional 5.0 million shares, Dubai World now owns about 19.5 million outstanding shares of MGM Mirage, representing a 6.5% stake in the casino company. As of Sept. 30, MGM had 299.4 million shares outstanding. Analyst Lawrence Klatzkin of Jefferies said he expects Dubai World to continue to increase its stake in MGM. Klatzkin believes this will please investors and limit downside for the shares.

According to analyst Celeste Mellet Brown of Morgan Stanley, Dubai World's latest investment increased her conviction in the theory that $84.00 is the new floor for MGM's stock.

The purchase price of the deal is slightly higher than the $84.00 per share Dubai World's October cash tender offer. Dubai World had offered to buy up to 14.2 million shares, or about 5.0% of MGM's outstanding stock. The deal, however, was shrunken when shareholders tendered just 348,903 shares, or 0.1% of the outstanding shares, which Dubai World agreed to buy.

Dubai World and MGM Mirage entered an agreement in August to jointly develop MGM Mirage's $2.7 billion CityCenter in Las Vegas. As part of that deal, Dubai World purchased 14.2 million shares from the MGM, which included a 50.0% stake in the CityCenter project. (See: Dubai's Vegas Game Plan)

It's been a year of growth for MGM Mirage, which joined the rush of Las Vegas casinos to Macau and has opened facilities in Detroit and Atlantic City. MGM is also planning a hotel and entertainment complex in Abu Dhabi, one that will not involve gambling. (See "MGM MIrage: The House Wins") MGM Mirage's name derives in part from the Metro- Goldwyn-Mayer movie studio, which Kerkorian previously owned, although the two businesses are not otherwise related.

Über Glücksspiele in Macau - Gambling in Macao:

Macau (englisch Macao) liegt rund 50 Kilometer westlich von Hongkong und ist das Glücksspiel-Paradies in Asien.

Macau hat rund 40 Spielcasinos. Die grössten Casinos sind The Venetian Macao, MGM Macao, Wynn Macao, Galaxy StarWorld, City of Dreams, Sands Macao, Casino Lisboa.

Neben den riesigen und farbenfrohen Casinobuildings ist eines der Wahrzeichen der Macau Tower (Fernsehturm mit 338 Meter) mit atemberaubenden Ausblicken auf die Stadt.

Macau erstreckt sich über eine Fläche von 115.3 km2 und hat rund 620'000 Einwohner.

--- Ende Artikel / Pressemitteilung Dubai World Gambles On MGM ---


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