Kerkorian May Increase Stake in MGM Resorts
Mar 14th 2013 12:32PM
Updated Mar 15th 2013 7:00AM
In a filing with the U.S. Securities and Exchange Commission (SEC) today, investor Kirk Kerkorian's Tracinda Corp. indicated that it may boost its stake in MGM Resorts International Inc. (NYSE: MGM) from its current 18.6% to as much as 25% in early April. MGM's stock is getting a healthy lift from the news.
According to the filing, Kerkorian expects to use working capital to make the purchase, provided, of course, that he ultimately decides to do so. The filing notes:
Tracinda continues to believe that there is substantial value in the assets of MGM Resorts and that the Company is a good long-term investment.
MGM recently received approval from the government of Macau to build a second resort/casino on the island's Cotai Strip and the casino operator has also filed an application with the state of Nevada to operate online gambling within the state. Revenue growth in Macau is expected in the range of 5% to 10% in 2013.
Shares of MGM are up 7% at $13.27 in a 52-week range of $8.83 to $14.80.
Filed under: 24/7 Wall St. Wire, Activist Investor, Casinos & Hotels Tagged: MGM