LAS VEGAS (
) -- MGM
is planning to sell its 50% stake in the Borgata casino resort in Atlantic City, N.J., the
Wall Street Journal
reports, citing a source familiar with the matter.
MGM has been scouting for buyers but it hasn't yet come to a deal, two people told the
MGM, which partners with
to manage the Borgata property, is reportedly asking for between $700 million and $850 million for its half. However, interested buyers feel the business is worth about $500 million to $550 million, sources told the
MGM hopes that its plan to sell its Atlantic City interests will convince New Jersey regulators to agree to curtail their regulatory oversight of the company.
An unfavorable regulatory ruling could impact MGM's interests elsewhere including a proposed initial public offering of its Macau assets in Honk Kong later this year, the
Last year, New Jersey's Division of Gaming Enforcement issued a confidential report saying MGM should disassociate from Pansy Ho, its joint venture partner in Macau, labeling her an "unsuitable" business partner.
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