Kerkorian a big fan of the rhythm method

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Kirk Kerkorian has abruptly withdrawn his bid for the MGM Bellagio and City Center properties right before he could finish the deal. Kerkorian told MGM’s board yesterday that his investment vehicle Tracinda was pulling its offer. Some shareholders raised an eyebrow over Kerkorian’s bid for two properties that he ostensibly owns by being the largest shareholder of MGM and having virtual control of the board. The move was seen as a way to cherry-pick luxury assets into one fancy, higher growth pool and leave MGM with its “core properties.”
MGM shares (and Kerkorian’s coffers) have jumped 38% since the bid was announced two months ago but retracted almost 10% in reaction to this morning’s withdrawal. MGM also announced a 50-50 venture with Caribbean casino developer Kerzner to build a new casino on the strip.
Kerkorian Pulls Bids for MGM Casinos [DealBook]

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