March 5 (Bloomberg) -- MGM Mirage and Dubai World failed to reach agreement with Deutsche Bank AG and talks on a $1.2 billion loan to complete the Las Vegas CityCenter project collapsed, according to five people with knowledge of the matter.
Deutsche Bank was seeking equity and debt stakes in the $11.2 billion development on the Las Vegas Strip in return for the loan, said the people, who spoke on condition of anonymity. MGM Mirage and Dubai World, which would have merged CityCenter with a neighboring property owned by the bank, are now holding talks with other parties, one of the people said.
MGM Mirage, controlled by 91-year-old investor Kirk Kerkorian, fell to its lowest in at least 19 years in U.S. trading yesterday after saying it may breach terms of its senior credit facility this year. Reaching a deal with Frankfurt-based Deutsche Bank would have helped MGM Mirage and its Dubai partner finish the project without spending more of their own cash.
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