Shares of U.S. casino companies fell on Friday amid concerns that a possible debt default at Dubai state-owned conglomerate Dubai World DBWLD.UL could derail a budding economic recovery that has seen investments by casinos in Las Vegas and emerging markets.
Casino operator MGM Mirage (MGM.N), which is a partner with Dubai World in the $8.5 billion CityCenter project in Las Vegas, saw shares dip 9 percent in early trade on the New York Stock exchange. The stock bounced back somewhat and was down 3.3 percent at $10.65 by late morning.
"Dubai is a large holder in MGM shares," said Susquehanna Financial Group analyst Robert LaFleur. "If they're in a position where they're seeking liquidity, you have to wonder whether they'll look to those shares as a source of potential liquidity."
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