MGM Announces plan to divest Atlantic City Holdings
Started by Atltrainman on Monday, 8th February 2010 11:37 am
MGM Mirage announced this morning it will divest itself from its holdings in Atlantic City by placing its 50 percent ownership stake in the Borgata resort and its vacant land holdings into a trust arrangement.
Read the full article at http://www.lvrj.com/news/breaking_news/MGM-to-divest-from-Atlantic-City-83803412.html
parchedearth responded on Monday, 8th February 2010
Boyd will make a low-ball offer, but eventually it is a no-brainer to control the other half of Borgata. Borgata is the only good thing AC has left.
Not sure what more MGM is going to be able to do in Macau (beyond the existing MGM Grand). It may be too late to plan and build a new property from scratch. They are planning a $1B IPO on the HK exchange. Maybe they can buy an existing property like a tower in City of Dreams or the Crown.
Chuckmonster replied on Monday, 8th February 2010
too late? the Macau game has barely gotten started for western casino companies. mgm already has property on Cotai and a ton of planning done already for that resort and phase II of mgm grand macau. wynn will be opening encore macau in april and will be announcing their plans for cotai within six months after that... i'm hearing from sources that the wynn cotai plans are in the nitty gritty phase of final details, financing is in place (handled by the ipo) and the shovels will hit the ground in mid 2010.
re: MGM buying mpel's holdings - never gonna happen. Macau's limited gaming concessions don't work the way free enterprise over here works.
here's a slightly outdated list of the properties and their concessioneers:
http://www.macautripping.com/concessions/