Kerkorian eyeing Bellagio Casino

The billionaire and majority share holder of MGM Kirk Kerkorian announced today his interest in Bellagio Hotel & Casino and CityCenter complex in Las Vegas.

Kerkorian eyeing Bellagio Casino Kerkorian owns 56% of MGM Mirage (NYSE:MGM) via Tracinda Corp. and announced that he is studying options including a financial restructuring' of the part of MGM it doesn't own. Following the news, shares of MGM are up 16% in the aftermarket trading hours. The MGM board has confirmed that it would take a look into the proposal in due time.

This is not the first time Kerkorian is driving the casino shares wild. Last November he attempted buying over 5% of MGM, or 15 million shares at $55, but eventually the speculative side of the market caught up, the price soared and he was able to get less than 1%.

The Las Vegas casinos are perfect example that the Strip is all about gambling and fast wins (or losses). With the record profits raked by the casinos in 2006, and the ever rising real estate value of the land under the casinos, buying gambling houses in Las Vegas has never been a better investment.

Harrah's is another big name which went down that road recently. Harrah's Entertainment (NYSE:HET) accepted a $27.8 billion buyout bid by the private equity firms Apollo Management Group and Texas Pacific Group.

05/21/2007