MGM to organise beauty pageant

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MGM MIRAGE: Las-Vegas based casinos and hotels operator reportedly organising 'beauty contest' for would-be purchasers of assets. (Getty Images)

MGM Mirage has hired investment bank Morgan Stanley to evaluate bids for regional casinos in Michigan and Mississippi, a person close to the gaming firm said on Sunday.

Morgan Stanley declined to comment.

Infinity World, the Dubai World subsidiary, is a joint venture partner of MGM in the $8.6 billion CityCenter project in Las Vegas now being built.

Dubai World has sued MGM and asked to be relieved of its funding obligations, a move that threatens to throw the unfinished project into bankruptcy. MGM Mirage also risks default on its $7 billion senior credit facility.

News agency Bloomberg said potential buyers have expressed interest in combinations of the assets, (MGM Grand Detroit, the Beau Rivage in Biloxi and the Gold Strike in Tunica) said the person, who declined to be named.

MGM and Dubai World are required to fund a further $800 million in construction costs before they can access a $1.8 billion loan to complete the project. MGM company spokesman, Alan Feldman, has already said it can provide its share.

“We have the money to complete CityCenter,” Feldman said in an interview.

Feldman declined to comment on other reports that Australian (and casinos owner) James Packer may be interested in becoming involved in the CityCenter project.

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READERS' COMMENTS

MGM trouble
Posted by sara, uae on Monday 6 April 2009 at 08:43 UAE time

the $8.6 billion investment of Infinity World? You missed the correct number here - because Infinity World has increased their stake in MGM after the inititial investment!

Shares investment: first Dubai invested 9,4% - then they increased to 14.75%. Then an increase to 20% was approved by the US regulator!
Please also note, the stock value of MGM was 84$ a share when Dubai invested initially and now stands a little over 1 U$.

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