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Kirk Kerkorian Wants to Increase Stake in MGM Resorts
The Motley Fool
March 14, 2013
By John Divine
Ninety-five year-old billionaire investor and mogul Kirk Kerkorian let
his continued interest in the struggling casino MGM Resorts (NYSE: MGM
) be known in a filing with the SEC yesterday. Kerkorian, whose net
worth Forbes puts at $3.3 billion. already owns 18.6% of MGM's stock
through Tracinda Corporation, a private investment company in which he
is the sole shareholder.
Wednesday's 13D/A filing discloses Tracinda's intentions to increase
its stake in the casino to up to 25%, though whether it will end up
with that much of the company depends on "market conditions." Per
MGM's trading policy, Kerkorian isn't even allowed to buy additional
shares until the third trading day after MGM's next quarterly earnings
release. With earnings not slated to be announced until Friday, May
3,, Kerkorian won't be able to add to his 91 million share, $1.2
billion stake in the company until at least Wednesday, May 8, when
market conditions could have dramatically changed from where they
stand today.
MGM shares were up as much as 7% on the news.
More Expert Advice from The Motley Fool
When MGM Resorts began constructing the CityCenter in Las Vegas, it
was an audacious plan that seemed like a sure bet with its prime
location in the center of The Strip. But Las Vegas hit a rough patch
during the Great Recession and has yet to fully recover, so MGM has
since turned its attention to a new market in Macau. This Chinese
gaming enclave now holds the key to the company's future, and a new
resort on Cotai may relieve the company from crushing debt. For expert
analysis on whether this former high-flying stock can regain its form
on the back of a growing presence in Asia, you're invited to check out
The Motley Fool's new premium report on MGM Resorts. As an added
bonus, you'll receive a full year of key updates and guidance as news
develops, so don't miss out - simply click here now to claim your copy
today.
The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed
a stunning betrayal - and told his biographer, "I will spend my last
dying breath... and every penny of Apple's $40 billion in the bank to
right this wrong." What was it that made Jobs so irate - and why could
it make a few in-the-know investors some major profits over the coming
months and years?
Fool contributor John Divine has no position in any stocks
mentioned. You can follow him on Twitter @divinebizkid and on Motley
Fool CAPS @TMFDivine.
The Motley Fool has no position in any of the stocks mentioned. Try
any of our Foolish newsletter services free for 30 days. We Fools may
not all hold the same opinions, but we all believe that considering a
diverse range of insights makes us better investors. The Motley Fool
has a disclosure policy.
The Motley Fool
March 14, 2013
By John Divine
Ninety-five year-old billionaire investor and mogul Kirk Kerkorian let
his continued interest in the struggling casino MGM Resorts (NYSE: MGM
) be known in a filing with the SEC yesterday. Kerkorian, whose net
worth Forbes puts at $3.3 billion. already owns 18.6% of MGM's stock
through Tracinda Corporation, a private investment company in which he
is the sole shareholder.
Wednesday's 13D/A filing discloses Tracinda's intentions to increase
its stake in the casino to up to 25%, though whether it will end up
with that much of the company depends on "market conditions." Per
MGM's trading policy, Kerkorian isn't even allowed to buy additional
shares until the third trading day after MGM's next quarterly earnings
release. With earnings not slated to be announced until Friday, May
3,, Kerkorian won't be able to add to his 91 million share, $1.2
billion stake in the company until at least Wednesday, May 8, when
market conditions could have dramatically changed from where they
stand today.
MGM shares were up as much as 7% on the news.
More Expert Advice from The Motley Fool
When MGM Resorts began constructing the CityCenter in Las Vegas, it
was an audacious plan that seemed like a sure bet with its prime
location in the center of The Strip. But Las Vegas hit a rough patch
during the Great Recession and has yet to fully recover, so MGM has
since turned its attention to a new market in Macau. This Chinese
gaming enclave now holds the key to the company's future, and a new
resort on Cotai may relieve the company from crushing debt. For expert
analysis on whether this former high-flying stock can regain its form
on the back of a growing presence in Asia, you're invited to check out
The Motley Fool's new premium report on MGM Resorts. As an added
bonus, you'll receive a full year of key updates and guidance as news
develops, so don't miss out - simply click here now to claim your copy
today.
The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed
a stunning betrayal - and told his biographer, "I will spend my last
dying breath... and every penny of Apple's $40 billion in the bank to
right this wrong." What was it that made Jobs so irate - and why could
it make a few in-the-know investors some major profits over the coming
months and years?
Fool contributor John Divine has no position in any stocks
mentioned. You can follow him on Twitter @divinebizkid and on Motley
Fool CAPS @TMFDivine.
The Motley Fool has no position in any of the stocks mentioned. Try
any of our Foolish newsletter services free for 30 days. We Fools may
not all hold the same opinions, but we all believe that considering a
diverse range of insights makes us better investors. The Motley Fool
has a disclosure policy.