(In the item "MGM Mirage To Lend Name To Resort Near Giza
Pyramids," at 8:35 a.m. EDT Tuesday, it incorrectly said that Kirk
Kerkorian still controls the company. The correct version
follows.)
DOW JONES NEWSWIRES
MGM Mirage (MGM) and New Giza for Real Estate Development are
planning a luxury hotel near the base of the famous Giza pyramids,
with the Egyptian developer providing the funding.
MGM Mirage shares were up 2.6% at $6.53 in recent premarket
trading. However, the stock has lost roughly 85% of its value in
the past year, though it has more than tripled since hitting an
all-time low of $1.81 in March.
The casino operator, until recentlycontrolled by billionaire
investor Kirk Kerkorian, has been in turmoil in recent months as it
struggles to pay down more than $14 billion in debt as casino
revenue continues to decline. MGM Mirage recently launched a
separate hotel division and has struck deals with developers to
spread its brands around the world. In the past, MGM Mirage has
struck joint-venture partnerships with real-estate developers and
other casino operators.
MGM Mirage will provide management services and brand fees
through its hospitality unit. New Giza for Real Estate Development
is developing the resort community, which will be about 40 minutes
from Cairo's airport and connected by electric train to an Egyptian
antiquities museum that is under construction.
The 550-room MGM Grand is being designed and is expected to open
in 2013. The 1,500-acre development will include upscale homes,
three resort hotels, restaurants, shopping malls and a high-end
golf course.
-By Tess Stynes, Dow Jones Newswires; 201-938-2473;
tess.stynes@dowjones.com