Report: Kerkorian to sell 20 million MGM Resorts shares

Billionaire financier Kirk Kerkorian is preparing to sell 20 million shares of MGM Resorts International through his privately held Tracinda Corp., Bloomberg News Service reported Monday night.

Kerkorian, the 94-year-old founder of the casino operator, sold 20 million shares of MGM Resorts last August, netting more than $214.8 million. The deal left Kerkorian, who owns MGM Resorts through Los Angeles-based Tracinda, with more than 111.17 million shares, or 22.8 percent.

Kerkorian is MGM Resorts' largest shareholder.

Bloomberg cited a person familiar with the matter who declined to be identified because the information is private. Bank of America Corp. is brokering the stock transaction, according to the source.

Winnie Lerner, a spokeswoman for Tracinda, and MGM Resorts spokesman Alan Feldman told Bloomberg they were unaware of the deal. Kerrie McHugh, a spokeswoman at Bank of America, declined to comment.

Nearly a year ago, Kerkorian said he was "evaluating" his investment in MGM Resorts. He retired from the company's board of directors in June.

In the transaction last August, Kerkorian sold the stock for $10.74 a share. The next day, the company's stock price on the New York Stock Exchange plunged more than 13 percent.

Shares of MGM Resorts closed Monday at $13.67, down 33 cents or 2.36 percent.

Kerkorian's stake in MGM Resorts has diminished over the past seven years. He was the company's majority owner with a more than 50 percent stake as recently as 2009. Over the years, he made announcements about his MGM Resorts holdings that many analysts viewed as ways to try to drive up the stock price.

Kerkorian is ranked No. 117 on the Forbes list of wealthiest Americans with a net worth of $3 billion.

Contact reporter Howard Stutz at hstutz@reviewjournal. com or 702-477-3871. Follow @howardstutz on Twitter.