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Billionaire looks to increase MGM stake

One of the major stakeholders in gaming giant MGM Mirage has announced plans to increase its stake in the company, a declaration which led to boosts for casino operators across the industry.

Tracinda, owned by billionaire Kirk Kerkorian, currently holds 56.3 per cent of MGM's stock, but plans to raise this to over 60 per cent.

Following the announcement, shares in MGM Mirage rose by ten per cent to an all-time high, with other operators such as Wynn Resorts also experiencing increases.

Mr Kerkorian founded MGM nine years ago and has presided over a series of acquisitions which have strengthened the company's position in the market. MGM is now the second biggest operator in the country after Harrah's Entertainment.

Harrah's itself has been the subject of a private-equity takeover bid this week, with fellow operator Boyd Gaming rumoured to be next in line as investors look to capitalise on the lucrative gambling market.


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