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.
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
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.