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Dubai Government Invests $5B in MGMMirage and CityCenter

By Chuckmonster on Wednesday, 22nd August 2007 1:58pm
  » filed under MGM Mirage  comments: 0

   

The MGMMirage investor bait and switch saga comes back to life with an unexpected new suitor - the Government of Dubai.

Dubai World, which is described in the Financial Times as a holding company for the Dubai Government, has purchased $2.4 Billion USD worth of MGMMirage stock as well as purchased $2.7 B, 50% stake in the CityCenter project. Dubai World will now hold a 50% stake in the unfinished project.

This "mini-merger" has numerous repercussions, initially it will retire a large chunk of MGMMirage's CityCenter related debt (to be repurposed for the Circus-Circus site?) and potentially open some international development doors for the company as it seeks out non-gaming hotel projects.

Any time a company parses out its operations and assets to "partner investors" there's a good chance that the rest of it might get eaten as well. Dangerous waters indeed.



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