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.

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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
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