Search
 

Tender Offer for MGM Mirage Stock Bombs

LAS VEGAS-With the casino operator's share price standing above the offer price, a Dubai World subsidiary attracts only 2.4% of the maximum number of shares it could have acquired.

By Brian K. Miller | Updated on October 08, 2007

LAS VEGAS-Dubai World subsidiary Infinity World Investments said Monday its tender offer for up to 14.2 million shares of MGM Mirage common stock netted it just 348,903 shares. The $84 per-share offer was made in August, when MGM’s share price was in the mid $70s per share. Since mid-September, the company’s has been trading above the offer price. In early afternoon trading Monday, MGM shares were trading at $95.19.

The tender offer was part of a larger transaction between Dubai World and MGM Mirage that also included Dubai World acquiring a 50% stake in MGM Mirage’s $5.4-billion CityCenter development on the Las Vegas Strip and acquiring 14.5 million shares of MGM Mirage common stock directly from MGM. Had the tender offer been successful, the result would have been a 9.5% stake in the company in addition to the CityCenter investment.

Although Infinity World isn’t commenting on whether it will do so, the tender offer states that Infinity World may purchase additional shares on the open market or through private negotiations.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.