MGM Gets Tracida/Kerkorian Jolt (MGM)

Posted in pre-market 
October 20th, 2009

MGM MIRAGE (NYSE: MGM) is surging this morning.  The company disclosed large non-vash charges to its City Center investments of $955 million in pre-tax charges.  But then came the announcement from TRACINDA, which is exploring partnerships over MGM and other alternatives over MGM.  TRACINDA will not engage in any deal before City Center opens in December but believes there is substantial value there that is not reflected in the stock. The stock closed at $11.80 yesterday and its 52-week range is $1.81 to $17.30, but shares are up 9.75% at $12.95 and have traded over $13.00 briiefly this morning.  As of 8:29 AM EST we have seen some 975,000 shares trade hands versus an average volume of 35 million.  Tracinda Corporation is a private investment corporation owned by billionaire Kirk Kerkorian. -JON OGG

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