Leisure
MGM Approves Share-Buyback Plan
Nicholas Yulico
05/14/08 - 10:04 AM EDT
MGM Mirage (MGM Quote - Cramer on MGM - Stock Picks) took the bull by the horns and approved a massive share buyback, a move that shows the casino operator remains focused on ways to unlock value for shareholders.
MGM's stock price has been cut in half since last fall, as the company faces declining profits in its Las Vegas casinos, which include the Bellagio and MGM Grand resorts.
The company on Wednesday said it has approved a new 20 million-share repurchase plan but didn't commit to certain dates it will buy shares.
The buyback amounts to 7% of the outstanding shares, but more importantly 19% of the float.
Billionaire Kirk Kerkorian and Dubai World, the investment arm of the Dubai government, are among the insiders that own 63% of MGM's shares.
