Genting Discloses 3.2% Stake in MGM MIRAGE (MGM)
Genting, a Malaysia-based casino and gaming group, disclosed early this morning that it has taken out a 3.2% stake in MGM MIRAGE (NYSE: MGM) as part of the $2.5 billion stock and bond offering announced in mid-May. The purchase, which did not need to be disclosed, matched the $100 million investment by MGM's largest shareholder, Kirk Kerkorian. As an FT article notes, Genting and Kerkorian’s Tracinda Corp. each bought 14.3m shares at $7.
Just after the offering, Genting disclosed that it purchased $100 million in secured bonds.
On the day MGM announced the offering -- May 13 -- the stock tumbled about 30% and has since fallen another 18%. Despite the seemingly positive news, shares of MGM have traded modestly lower today, currently down 0.6% to $7.11.
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