Billionaire Kerkorian sells 5 million MGM shares to Dubai world

By Margarita Snegireva. State-owned investment company Dubai World said on Friday it bought 5 million shares of MGM Mirage, the world's No. 2 casino company, raising its stake to 6.5 percent.

Photo: Billionaire Kerkorian sells 5 million MGM shares to Dubai world

MGM Mirage is a Las Vegas, Nevada-based business engaged in the development, ownership and operation of hotels and casinos throughout the world. The company began operations on May 31, 2000 after the completion of a merger of MGM Grand Inc. and Mirage Resorts, Inc. It is currently the second largest gaming company in the world. Billionaire Kirk Kerkorian and his Tracinda Corporation are currently the majority owners of MGM Mirage. Kerkorian was also the former owner of the Metro-Goldwyn-Mayer movie studio, from which the predecessor corporation MGM Grand, Inc. derived its name.

As of 2005, the company owns 831 acres (3.4 km²) of property on the Las Vegas Strip. Its yearly revenue is around $7.4 billion USD.The company also owns the recently completed hot spot MGM Grand Detroit , in downtown Detroit, Michigan.

Dubai World, which is seeking to become a high stakes player on the Las Vegas Strip, paid $424 million, or $84.80 each, for the shares, according to a U.S. Securities and Exchange Commission filing.

The seller was the Lincy Foundation, a charity founded by billionaire investor Kirk Kerkorian, whose Tracinda Corp holds more than 51 percent of MGM Mirage shares.

Dubai World is an investment company that manages and supervises a portfolio of businesses and projects for the Dubai Government across a wide range of strategic industry segments and projects that make Dubai a leading hub for commerce and trading.

Dubai World was established under a decree ratified on March 2, 2006 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President & Prime Minister of UAE and Ruler of Dubai.