Tracinda uses 50 mln more MGM shares as collateral
LOS ANGELES, Oct 16 (Reuters) - Tracinda Corp, billionaire Kirk Kerkorian's holding company, on Thursday pledged another 50 million shares of casino operator MGM Mirage (MGM.N) as collateral for a credit line used to buy shares of Ford Motor Co (F.N), according to a regulatory filing.
The holding company had already pledged 50 million MGM shares as collateral to secure the $600 million credit line secured by Bank of America (BAC.N).
The 100 million shares account for about 36 percent of the Las Vegas-based casino operator's outstanding common stock, according to a filing with the U.S. Securities and Exchange Commission.
Tracinda holds about 149 million, or just under 54 percent, of MGM Mirage shares, which have fallen about 83 percent so far this year. The holding company controls about 6.5 percent of Ford shares, which are down about 68 percent year to date.
Goldman Sachs analyst Steven Kent on Thursday lowered his 12-month price target for casino companies, including MGM which was dropped to $17.00 from $32.00.
He cited a weak outlook for consumer spending, the sector's higher exposure to hedge funds, high levels of short interest and liquidity concerns. (Reporting by Deena Beasley, editing by Richard Chang)
