Dubai World is set to increase its stake in MGM Mirage to about 8.5 per cent if a joint cash tender offer for 10m shares is successful.
The shares will be purchased at between $75 to $80 a share, a premium of between 7.2 per cent and 14.3 per cent on MGM Mirage's closing price yesterday.
The Dutch auction announcement pushed MGM Mirage shares up 4 per cent to $72.95.
Kirk Kerkorian's Tracinda Corp, which owns about 52.4 per cent of MGM Mirage's outstanding shares, does not plan to tender any of its shares in the casino operator, said MGM, operator of 11 Las Vegas casinos including the Bellagio and the Luxor, in a filing with the Securities and Exchange Commission.
Dubai World, the Dubai government's holding company, will purchase half the tendered shares. Their stake will rise from 6.6 per cent to 8.4 per cent if all 10m shares are tendered.
Its stake has risen gradually since its deal with MGM Mirage in August for 14.2m shares and a 50 per cent share in MGM's Las VegascityCenter project.
The shares will be purchased at between $75 to $80 a share, a premium of between 7.2 per cent and 14.3 per cent on MGM Mirage's closing price yesterday.
The Dutch auction announcement pushed MGM Mirage shares up 4 per cent to $72.95.
Kirk Kerkorian's Tracinda Corp, which owns about 52.4 per cent of MGM Mirage's outstanding shares, does not plan to tender any of its shares in the casino operator, said MGM, operator of 11 Las Vegas casinos including the Bellagio and the Luxor, in a filing with the Securities and Exchange Commission.
Dubai World, the Dubai government's holding company, will purchase half the tendered shares. Their stake will rise from 6.6 per cent to 8.4 per cent if all 10m shares are tendered.
Its stake has risen gradually since its deal with MGM Mirage in August for 14.2m shares and a 50 per cent share in MGM's Las VegascityCenter project.