MGM Takes Sale Off the Table

Analysts had been crunching their numbers on how much all of MGM's assets taken together might be worth ever since Kerkorian began angling for change at the company. At the time he announced his interest in the Bellagio and City Center in late May, the stock was trading around $63.

The rough magic number on the stock's upside was $100, according to several analysts. Some thought an even higher valuation would be achieved.

"The sum of the parts is more attractive. It's always very attractive. People thought it could be reality. But if the company can't be split up, you'll never see $100 per share," says a buyside investor who declined to be named. He owned the stock for some time before selling his firm's entire MGM position prior to Wednesday's news, when the stock was in the low $80s.

With so much of the upside now gone, this source says MGM could fall back to the $65 to $70 range. You can even make a case for the stock being in the $50s, he adds.

As for Kerkorian, there are numerous theories floating around the gaming industry as to why he dropped out.

Some are speculating that Kerkorian announced his intention to buy the two assets just to give his own stock value a boost. The other theory is that MGM didn't want to give up its jewels and may have wanted a huge valuation for the Bellagio.

Either way, without the big deal Wall Street expected, MGM shareholders are now left without much further upside in the stock.