Kerkorian Folds, MGM Falls

Shares dropped Wednesday as the billionaire investor withdrew his plan to buy two of the casino-hotel company's plum properties

Kirk Kerkorian made quite a splash back in May when his investment company, Tracinda Corp., said in an SEC filing that it wanted to enter into negotiations with MGM Mirage (MGM) -- in which Tracinda holds a 56% stake -- to purchase the hotel and casino company's Bellagio and CityCenter properties (see, May 22, 2007, "Kerkorian Shuffles the MGM Deck"). But on June 20, Tracinda revealed that it has decided not to pursue such a deal -- and the news sent shares in the casino-hotel company sharply lower.

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