Kerkorian Moves In On MGM

Updated from 4:34 p.m. EDT

Billionaire investor Kirk Kerkorian wants to buy MGM Mirage's (MGM Quote) Bellagio casino and potentially make a bigger move with his investment.

In a Securities and Exchange Commission filing Monday, Kerkorian's investment firm, Tracinda Corp., said it intends to enter into negotiations with MGM to buy the Bellagio hotel and casino, a luxury resort located in Las Vegas.

Tracinda, which owns about 56% of MGM, also wants to pursue strategic alternatives with respect to its investment in the company. The move may include "financial restructuring transactions involving all or a substantial portion of the remainder of the company," the filing said.

A representative for MGM couldn't immediately be reached for comment.

Shares of MGM Mirage were soaring $9.55, or 15%, to $72.50 in after-hours trading.

The move also sent shares of other casino operators higher. Las Vegas Sands (LVS Quote)climbed $1.09, or 1.4%, to $77, while Wynn Resorts (WYNN Quote) rose $2.31, or 2.5%, to $96.50.

Kerkorian's move for the Bellagio comes as Las Vegas real estate prices have soared, leaving casino owners with properties that are in many cases undervalued in the public markets. MGM Mirage is said to be exploring options to unlock this value.