Kerkorian Boosting MGM Stake

His firm plans a tender offer for 15 million shares.
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Tracinda Corp. plans to launch a tender offer for up to 15 million shares of

MGM Mirage

(MGM) - Get Report

, a move that could give investor Kirk Kerkorian an additional 5.3% of the casino operator's outstanding shares.

Tracinda, Kerkorian's investment vehicle, said it will pay $55 a share for MGM, representing a 12% premium over the company's closing stock price of $49 on Tuesday.

Tracinda currently owns 158.4 million MGM shares, equal to 56.3% of the outstanding stock. The additional shares to be purchased represent 5.3% of the company's outstanding stock, or 12.2% of the shares not already owned by Kerkorian. Following the tender, he would hold a 61.7% stake.

"This tender offer demonstrates our confidence in MGM MIRAGE and its management and our commitment to the company's future," said a Tracinda representative in a press release.

Shares of MGM were surging 11% to $54.20 in premarket trading.

Other casino stocks also were higher.

Las Vegas Sands

(LVS) - Get Report

traded up $2.02, or 2.3%, to $93.77;

Boyd Gaming

(BYD) - Get Report

climbed $1.50, or $3.6%, to $43.61; and

Wynn Resorts

(WYNN) - Get Report

rose $3.05, or 3.4%, to $93.50.