Saturday, 4 April 2009

MGM Explores Casino Sales

MGM Mirage has hired Morgan Stanley to handle the potential sales of two of its steadiest cash cows — MGM Grand Detroit and Biloxi's Beau Rivage casino — according to people with knowledge of the matter.

The news comes after a person familiar with the matter said Australian billionaire and gambling magnate James Packer is weighing a stake in City Center, the troubled $8.6 billion Las Vegas development owned by MGM and Dubai World.

The Las Vegas-based MGM Mirage is under intense pressure to raise cash in order to meet looming obligations on its $13.5 billion in debt as well as to salvage an $8.6 billion real-estate project that still needs billions in funding. The company is also grappling with a dramatic decline in gambling revenues as consumers cut spending and companies cut back on travel to Las Vegas.

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