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Best of Howard Stutz

Gaming Guru

Howard Stutz
 

Kerkorian sells 20 million MGM shares

28 February 2012

LAS VEGAS, Nevada -- Billionaire financier Kirk Kerkorian sold 20 million shares of MGM Resorts International Monday through his privately held Tracinda Corp., for $268 million.

In a filing with the Securities and Exchange Commission this morning, Los Angeles-based Tracinda, Kerkorian's investment arm, said the stock was sold at $14.02 per share but had a net value of $13.40 per share.

The transaction is expected to close Thursday.

Following the sale, the 94-year-old Kerkorian remains MGM Resorts' largest shareholder with almost 91.2 million shares, or 18.7 percent of the company.

In a statement, Tracinda said it would not sell any additional MGM Resorts stock for at least 60 days. The company said it monitors its investment in the casino operator, which Kerkorian founded.

"As the company's largest stockholder, Tracinda occasionally receives inquiries regarding the company and Tracinda's shares of common stock," the statement read. "From time to time, Tracinda may continue to explore potential transactions involving its shares of common stock (including negotiated or other sale transactions). Tracinda may ultimately not enter into any such transaction."

Last August, Kerkorian sold 20 million shares of MGM Resorts, netting more than $214.8 million. After the sale, MGM Resorts stock fell more than 13 percent.

MGM Resorts shares are up about 1 percent this morning on the New York Stock Exchange.

Nearly a year ago, Kerkorian said he was "evaluating" his investment in MGM Resorts. He retired from the company's board of directors in June.

Kerkorian's stake in MGM Resorts has diminished over the past seven years. He was the company's majority owner with a more than 50 percent stake as recently as 2009.

Over the years, Kerkorian had made announcements about his MGM Resorts holdings that many analysts have viewed as ways to try to drive up the price the stock.

Kerkorian is ranked No. 117 on the Forbes list of wealthiest Americans with a net worth of $3 billion.
Kerkorian sells 20 million MGM shares is republished from Online.CasinoCity.com.