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MGM Mirage to Partner On New Vegas Property - Kerkorian To Withdraw Bellagio CityCenter Offer

By Chuckmonster on Wednesday, 20th June 2007 2:43am
  » filed under Mergers & Acquisitions  comments: 0

   

MGMMirage is in talks to develop a new resort on the Las Vegas Strip which will be designed by Kerzner International.

According to the Wall Street Journal, MGMMirage will supply the property for the multi-billion dollar resort and Kerzner will design and operate the joint. In a similar arrangement at The Borgata in Atlantic City, MGMMirage and Kerzner will each retain half ownership.

But that's not all...

Kirk Kerkorian's Tracinda corporation may be on the verge of withdrawing its offer to buy Bellagio and CityCenter from MGMMirage.

The announcement of Kerzner as a partner to the project (Circus-Circus Center?) Kerkorian's chess move seems like it may have been a "castling" of Bellagio and CityCenter for safe keeping while MGMMirage plows forward with another new development. The strategic sale of B & CC would have removed debt load and corporate responsibility from MGMMirage and removed some of the financial road blocks that prevented the fast tracking of the Circus-Circus project. Tracinda would have essentially become a holding corporation - the bag man - while MGMMirage would focus more on development of gaming and non-gaming resorts globally. With Kerzner ponying up a chunk of the cheddar, design resources and operating costs of the new resort, MGMMirage will be less open to hyperextension of resources and capital.



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