UPDATE 1-Malaysia's Genting pays $100 mln for MGM stake

(Adds MGM confirmation)

KUALA LUMPUR, June 10 (Reuters) - Malaysian gaming group Genting (GENT.KL) has paid $100 million for a 3.2 percent stake in U.S. casino operator MGM Mirage (MGM.N), an official from the U.S. company said on Wednesday.

The stake was offered under a $1 billion equity placement by MGM Mirage last month. [ID:nN18339546]

"We take this as a sign of great confidence in our company," Alan Feldman, Senior Vice President of Public affairs for MGM Mirage told Reuters.

Last month, Kuala Lumpur-based Genting and its unit Resorts World RWBW.KL had subscribed for a combined $100 million worth of notes issued by MGM Mirage.

The notes were part of MGM's $1.5 billion fund-raising exercise to help settle its outstanding debts and for general corporate purposes.

Malaysian analysts had said the investments could pave the way for Genting to acquire a stake in MGM or take over the U.S. casino operator's investment in MGM Grand Macau.

By 0159 GMT, Genting had fallen 0.8 percent to 5.95 ringgit a share in a wider market .KLSE that gained 0.3 percent. (Reporting by Edwin Chan in LOS ANGELES and Soo Ai Peng in KUALA LUMPUR; Editing by Lincoln Feast)