Updated from 1:07 p.m. EDT
MGM Mirage (MGM) led casino stocks higher on Monday following a weekend report that it would be selling two of its properties to raise cash.
The Wall Street Journal reported Saturday that the Las Vegas-based company has hired Morgan Stanley and is considering selling the MGM Grand Detroit in Michigan and the Biloxi Beau Rivage in Mississippi, for potential proceeds of $2 billion.
Also, Reuters reported late Monday that Colony Capital, a Los Angeles-baed private-equity firm, is considering an investment in MGM's debt.MGM shares closed at $5.53, up 19%, or 88 cents, after trading as high as $6.70 earlier. Las Vegas Sands (LVS) finished up 48 cents, or 11% to $4.96. Wynn Resorts (WYNN) closed up $1.55, or 5.2% to $32.20, following an upgrade. Robin Farley of UBS, in upgrading the company's shares to buy from neutral, notes that Wynn has no debt due this year and holds about $1.6 billion in cash. Boyd Gaming (BYD) shares were higher by 2.2%, or 12 cents to $5.62 despite a downgrade by SMH Capital from accumulate to neutral. Melco Crown Entertainment (MPEL) shares were down 1.5%, or 7 cents to $4.51. Penn National Gaming (PENN) shares were down 3.3%, or 91 cents to $26.40, following an earlier SMH Capital downgrade from accumulate to reduce.
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