CAPTAIN OF INDUSTRY
The mostly elusive and somewhat mysterious Kirk Kerkorian is one of America’s very richest men—and as the largest individual shareholder of MGM Mirage he’s now trying to buy the Bellagio Hotel and the City Center project that’s currently under construction at center-strip!
The 89 year old billionaire owns 56% of the parent company, and the day he notified Wall Street of his intentions MGM’s share price went into the stratosphere increasing in value by some 27%, and jumping from $18 billion to almost $23 billion; which meant that his personal shares increased by $2.6 billion!!!!
My investment banking sources are convinced he will get his wish and windup owning the two tiffany properties.
The shares of MGM, which began at around $62 before he spoke, are now being projected to reach very close to $100 in any future corporate restructuring which they believe is behind Kerkorian’s power-play.
“It may change the entire way Wall Street looks at Vegas,” I was told. “Kerkorian’s move unlocks significant value and could lead to an eventual takeout of the company. He wins big on both sides of the deal—and MGM will still be associated with the key Vegas properties by getting a management contract to operate both businesses.”
The bankers say it will also enable MGM to move more rapidly in developing its recent acquisition of the 78 vacant acres around Circus Circus, which now might also become the next Strip property to be imploded and replaced!
One gaming analyst said, “There’s no question that Kerkorian wants the company’s positioning changed so it’s worth much more in the future than today, even if it means selling it to somebody else or taking it private just like Harrah’s is doing.”