Kerkorian's MGM stake is cut

The Bev Hills billionaire had owned 53.8 percent of MGM Mirage, the troubled gambling/resort company, but a series of stock and bond offerings will reduce that holding to 39 percent. The dilution won't have any real impact on the company, but there is some symbolism to consider. If MGM Mirage didn't face debt levels of $14 billion, there would be no need to such a large offering. From the WSJ:

The company initially expected to offer 81 million shares, but then increased that offering to 143 million at $7 a share. Mr. Kerkorian pledged to buy 10% of the shares offered. According to an SEC filing Monday, he purchased 14.3 million shares. But the purchase was not enough for him to maintain a majority stake in the company.


More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent stories:
Letter from Down Under: Welcome to the Homogenocene
One last Florida photo
Signs of Saturday: No refund
'I Am Woman,' hear them roar
Bobcat crossing

New at LA Observed
On the Media Page
Go to Media

On the Politics Page
Go to Politics
Arts and culture

Sign up for daily email from LA Observed

Enter your email address:

Delivered by FeedBurner


Advertisement
Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
LA Observed on Twitter and Facebook