On January 9th, 2007, the shares of MGM Mirage improved after both the company and Dubai World offered to buy up to 10 million shares for seventy five dollars up to eighty dollars each. The total shares of MGM Mirage improved $3.81 or 5.4% to $73.79. The stock of the company has traded from $58 to $100.50 over the last year. The gaming organization has about 293.8 million shares in all.
Fritz Owens from Calyon Securities Incorporated commented in a client note that the offer provides an evidence of the good partnership between MGM and Dubai World. Ms. Felicia Hendrix from Lehman Brothers commented that the offer only shows that MGM and Dubai World are confident of their operations and its long term growth. She also expects that Dubai World intends to have a fifteen to twenty percent interest in MGM.
Last December 2007, Dubai World increased its stake in MGM to 6.5% by making an additional buyout through the Lincy Foundation, Kirk Kerkorian's charity. Owen's is hopeful on MGM Macau's long term plans. MGM Grand Macau casino should achieve good results but the analyst predicted that the plans to construct a second casino facility on the Cotai Strip with Pansy Ho, will give the chance to attract middle and upper-class gamers.
01/17/2008 11:19 PM
Richard Kennedy