May 22, 2007 / 1:47 AM / 12 years ago

Tracinda to explore options for MGM Mirage stake

People walk along the casino floor at the Bellagio hotel and casino in Las Vegas, Nevada April 12, 2004. Billionaire investor Kirk Kerkorian's Tracinda Corp. said it would explore strategic options for its investment in MGM Mirage Inc. and would enter talks to purchase the No. 2 U.S. casino operator's Bellagio, and CityCenter properties in Las Vegas. REUTERS/Las Vegas Sun/Steve Marcus SM

PHILADELPHIA (Reuters) - Billionaire investor Kirk Kerkorian’s Tracinda Corp. said it would explore strategic options for its investment in MGM Mirage Inc. and would enter talks to purchase the No. 2 U.S. casino operator’s Bellagio Hotel and Casino, and CityCenter properties in Las Vegas.

Tracinda said the alternatives for its MGM Mirage (MGM.N) investment may include financial restructurings of all or a substantial part of the remainder of the casino and hotel operator.

In January, Tracinda tried to increase its stake in MGM Mirage to more than 61 percent, but failed to buy all the shares it wanted. It owned 55.9 percent of MGM Mirage as of January 11.

Tracinda said it has made no decision on any restructuring transactions for MGM Mirage, and reserved the right not to pursue any deals.

MGM Mirage could not be immediately reached for comment.

Last month, MGM Mirage said its CityCenter hotel, casino and residential project on the Las Vegas Strip would be larger and more costly than it had previously estimated. CityCenter is slated to open in November, 2009.

CityCenter is MGM Mirage’s latest Las Vegas development, sited between the Bellagio and Monte Carlo resorts at the busier end of the strip.

The project will include 2,700 private residences, a Mandarin Oriental luxury boutique hotel, a 4,000-room resort casino and a 470,000-square-foot retail and entertainment area.

Kerkorian’s Tracinda recently was among the bidders vying for DaimlerChrysler AG’s DCXGn.DE money-losing Chrysler Group. Cerberus Capital Management, however, won the hand of Chrysler last week.

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