Dubai World increases MGM Mirage stake

Dubai World on Friday disclosed that it’s taken its stake in MGM Mirage to 6.5%, buying a sliver of the interest held by billionaire investor Kirk Kerkorian, who remains the dominant shareholder of Las Vegas-based casino hotel.

According to a filing made with the Securities and Exchange Commission, the investment arm of the Dubai government raised its holding in the casino operator from 4.9% by buying 5 million shares at USD 84.50 each from the Lincy Foundation, Kerkorian’s philanthropic vehicle.

Kerkorian remains the dominant shareholder of Las Vegas-based MGM Mirage. As of August 31, his Tracinda Corp. owned nearly 154 million shares, according to data from Thomson Financial.

Dubai World became involved in MGM through a 50-50 venture to build the CityCenter complex in Las Vegas. Its tender offer to buy up to 14.2 million shares of MGM at us$ 84 each fell dismally short of its goal in October.

In the filing on Friday, Dubai said it wouldn’t buy more than 20% of MGM Mirage, unless in certain unspecified circumstances. In May, Tracinda Corp. said it wanted to enter into talks to buy CityCenter and the luxurious Bellagio casino, a plan that Kerkorian later dropped.