By: Las Vegas Now Staff
Dubai World, the investment arm of the Dubai government, boosted its stake in MGM Mirage Inc. to 6.5-percent by making an additional purchase through Kirk Kerkorian's charity, according to a filing with the Securities and Exchange Commission on Friday.
Cayman LP, an investment group for the Dubai government, bought 5 million shares of the Las Vegas-based casino operator from the Lincy Foundation on Dec. 24 for $424 million, or $84.80 per share, the filing said.
MGM Mirage stock was up $1.76 in morning trading Friday, at $86.01.
The investment gives Dubai World ownership of approximately 19.5 million outstanding shares of MGM Mirage. The casino operator had about 299.4 million shares outstanding as of Sept. 30, according to the filing.
Dubai World previously provided MGM Mirage with about $5 billion for a 50-percent stake in its $7.8 billion CityCenter megaresort being built on the Las Vegas Strip, and a minority stake in the company.
In October, Dubai World's cash tender offer for MGM Mirage ended short of its plan.
The company had offered to purchase up to 14.2 million shares, or nearly 5 percent of MGM Mirage's outstanding stock, at $84 per share. However, shareholders tendered 348,903 shares, or approximately 0.12 percent of the outstanding shares, which Dubai World agreed to buy. The company also agreed at that time to complete a previously announced deal to purchase 14.2 million shares directly from MGM Mirage at the same price.
(Copyright 2007 by The Associated Press. All Rights Reserved.)
