MGM Mirage Has A Believer in Dubai Government
MGM has gone to great lengths to bring its product to the World. Now, they apparently have a believer in the Dubai government. Dubai World, the investment side of the Dubai government, has decided to increase its stake in the Las Vegas based company.
On Friday, Dubai World made an announcement that they are increasing their shares by buying 5.0 million shares of MGM stock. They bought the stock from Lincy Foundation.
The shares were actually purchased on Monday, according to the SEC filing. $424 million was the price that they paid. The investment firm is actually owned by the Dubai government, and the people in charge found something that showed the large investment was worth the money.
Billionaire investor Kirk Kerkokian is the founder of the charity that sold the shares to Dubai World. He is the chairman of a company, Tracinda, that owns fifty one percent of MGM Mirage's stock.
The shares that were bought by Dubai World, coupled with what was already owned by them, increases their hold in the company to six and a half percent. Dubai World has previously had dealings with MGM Grand. In August, the two companies agreed to develop MGM Mirage's $2.7 billion CityCenter in Las Vegas, together.
