Posted on 08/25/2007 2:22:10 PM PDT by Issaquahking
Billionaire Kirk Kerkorian and MGM’s Board of Directors are expected to announce today (WED) that certain members of the Royal Family of Dubai- a Mid-East oil-rich kingdom - are buying into MGM Mirage and its $7-billion City Center hotel-condo complex. My Wall Street sources are abuzz this morning saying the multi-billion dollar deals signal the next phase of corporate takeovers and foreign investment into the booming Vegas gaming and hospitality business.
Kirkorian’s company, Tracinda that owns his share of MGM is reducing his stake from 54.15% to 51.65% in the transaction and Wall Street believes that Dubai World will ultimately buy all of Kerkorian’s stake in the future.
Bear Stearns Vegas watcher Joe Greff commented early this morning in a 4:55 a.m. email to his investors: “MGM’s stock closed last night (TUES) at $74.32. Dubai World will buy 14-million shares of MGM at $84 per share for a total of $1.2 billion in the open market and another $1.2 billion worth of shares directly from the company. Furthermore Dubai World will purchase a 50% share in MGM’s City Center project for just under $3-billion!”
Greff went on to say: “All in all, the deal will inject nearly $3.9B of cash into MGM. We believe this deal should be a positive for the stock, as it demonstrates value for the company and reduces development risk with selling half of City Center. Partnering with Dubai World should also help MGM penetrate international markets in which it currently does not have a presence. In addition, the deal immediately improves the company’s balance sheet, as it reduces leverage for other development deals, share buybacks, and/or special dividends.”
Greff has put a new price target of $95 on the stock before year-end. It is expected that all Vegas hotel stocks would rise at the Wall Street open this morning- and The Venetian opened hovering at the $100 mark just 5- days in advance of its grand gala opening of Sheldon Adelson’s new Cotai Strip megaplex in Macau. (See our Friday edition of Luxe Life for all the advance details of Sheldon’s superplan to bring his version of Venice to the Chinese colony when he opens his 2nd property there early next week).
The banker analyst concluded: “At this point, we do not foresee any regulatory issues with the deal.”
Its believed that MGM will use some of the proceeds from this deal for its planned partnership at the adjoining Circus Circus land block its assembled with Sol Kerzner who intends to build a version of his Bahamas resort, The Atlantis there. Ironically - or coincidentally- Kerzner has a resort in Dubai in partnership with certain members of the kingdom’s Royal Family. Some are speculating that he may well have played a role in this new mega-billion-dollar deal.
ping
"Champagne Wishes and Caviar Dreams!"
I was supposed to go to Dubai in September on a business trip, but that got cancelled (at least for me). Those who had been there described it to me as ‘what Vegas would be like if they had REAL money’.
ping
Muslims selling liquor?
When your not allowed to buy ports, sell ‘em enough liquor, and they’ll sell anything...
A city invented by Jews gets taken over by Arabs. Shows how far this planet has sunk. Our biggest mistake as a nation was in permitting the Arabs to control the oil supply. We have the might to remove them from control within a week. But our elites are totally corrupted by their petrobillions. They own FoxNews, exchanges and ports around the globe, half of Apple and Hollywood, and soon, everything. And these are camel jockeys who we put in power to begin with, and for whomk we drill the oil that they use to buy the planet.
I think the next big thing in Vegas could be “Luxury Health Care”, taken to the extreme.
That is, a resort that offers the finest medical services in the world, for the rich. When some moneybags goes there for surgery, they get pre-surgery pampering, the finest surgeons flown in, the most modern state of the art equipment, medicines and procedures, and expert recuperation and therapy.
The idea is that nothing is too grand. A hundred people working behind the scenes so that the medical procedure they receive is nothing like what a person would typically get in a hospital. Acupuncture and massage, herbal medicine and exotic diagnosis, fish that nibble away their dead skin in a luxurious pool, leaving behind a soothing emollient and almost no scar. Therapeutic muds and waters imported from around the world. Master dietitians and chefs to prepare delicious and healing meals. Elaborate antibiotic and vitamin regimens, all while under team health surveillance.
A typical stay could run from $300k to $3M.
The new Cuba???????
What Bush has allowed the Saudis and the UAE to get away with is disgusting.
Oh, and did you know that most of the folks who actually RUN Dubai ports are expatriate Brits? Rome2000, I hope you didn't take Schumer's bait.
Actually I don't think so.
Dubai 2020
Certainly as a country, Dubai is not SA. However, I agree with Ann Coulter, the difference bet. moderate and fundy Muslims is the length of the beard. They want Islam to dominate the world. The Arabs own much of Europe and they are imposing de-facto Sharia law in many of their no-go zones. They are also pushing it on a national and EU level.
Make no mistake, their ultimate goal is to conquer the West by any means, militarily, politically, economically and by their "population" bomb. That's what they've been saying all along. LISTEN TO OUR ENEMIES!
We all laugh at the "cheese-eating surrender monkeys". We are not far behind. Every time you criticize Islam, CAIR or some terror front group gets you fired or worse. We are supposed to host 10000+ Saudi students, one of the major sources of terrorism. This is INSANE!
It won't be long before some "Theo van Gogh" incident happens here because someone dared to criticize Islam.
Yeah Vegas was discovered by Jewish mafia dude Bugsy Siegel
How wrong is this casino being taken over by the Arabs Mafia dons be spinning in their graves
Certain Rat packers too
the “greater fool theory” at play right before your very eyes.
Really Clemenza I didn’t know that
I thought Middle East is alcohol free zone
Can you imagine I bet Mafia dons be spinning in their graves
Dubai's running out of oil in 2011 so they're working on replacing that with tourism, and are well on their way to doing just that.
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