Billionaire investor Kirk Kerkorian, the sole owner of Tracinda Corp. which owns 56.3 percent of MGM Mirage, the second largest casino operators in the world after Harrah's Entertainment Inc., plans to purchase 15 million stocks of the company for $825 million.
After the purchase Tracinda Corp. will own 61.7 of MGM Mirage, which operates the Bellagio, Circus Circus, the Luxor, New York New York and many other hotel and casinos in Las Vegas, Atlantic City and other places in the United States. The company will open its first casino in Macau in 2007.
On Monday, Tracinda agreed to sell its General Motors shares at $33 each in a private transaction on Friday. After the sale, Kerkorian will reduce his stake in GM to 7.4 percent instead of 9.9 percent of GM of the company's 565.5 million outstanding shares.
The 89-year-old Kerkorian, known as the "father of the mega resort", began his career as a casino owner in 1969 when he built the International Hotel, which at the time was the largest hotel in the world. He purchased MGM in 1973 but sold various parts of the company throughout the years.
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