MGM Mirage received permission from the Nevada Gaming Commission Thursday to sell a larger portion of the company to Dubai World. Dubai World, the particular financial arm of the Dubai government, already owns nine. 4% of the casino and hotel operator.
Beneath the proposed plan, Dubai may increase its stake within MGM to own as much as twenty percent of the business. Timing and price of shares for the offer have not been announced. MGM officials said market conditions would dictate when the offer would be consummated, but authorization is also needed by regulating agencies in other states that will MGM owns casinos within.
MGM Mirage also operates casinos within New Jersey, Illinois, and Macau. Dubai World also requirements Nevada approval for a betting license, so as to share within income from the CityCenter internet casino project currently under construction.
CityCenter is a major cause of the MGM Mirage decision to increase its partnership with Dubai. The condo-hotel-retail-casino complex has been frantically seeking financing to complete house phase, and rumors of severe liquidity problems have floated around MGM Mirage.
Dubai purchased its original shares within August 2007 at $84 a share. The stock has plummeted since then, dropping ninety percent of its worth. Shares opened Thursday in $9. 69. News of the imminent deal briefly started the stock, as it rallied late Thursday, and opened up Friday almost fully recovered from the early Thursday losses. But it has faded because today has progressed, shedding below $9 a talk about.
Published on November 21, 2008 by VirginiaMaddox