Casino mogul Kirk Kerkorian’s recent death, which came just nine days after his 98th birthday, has saddened the industry. Although it has been years since Kerkorian served in an executive role with MGM Resorts, his investment firm Tracinda Corp. is MGM’s biggest shareholder, at nearly 16 percent worth $1.75 billion. In his will, an “orderly disposition” of Tracinda’s common stock in MGM Resorts was called for.
Tracinda’s filing with the Securities and Exchange Commission listed Tracinda CEO Anthony Mandekic as the executor of Kerkorian’s estate, but he still needs formal appointment of the role. “Once such appointment has been formalized, Mr. Mandekic will be able to implement the directors of the Kerkorian will with respect to the orderly disposition of the common stock,” the filing says.
The filing also said that Tracinda believes MGM Resorts is a good long-term investment and its assets carry great value. Chris Jones, an analyst with Union Gaming Group, said there does not appear to be a clear time frame for when the shares must be disposed of, and said he would be surprised if it all happened at once.
Kerkorian was famous for building the International (now the Westgate) in 1969, the MGM (now Bally’s) in 1973, and then the MGM Grand in 1993, which were all the largest hotels in the world when built. He stepped down from the company board in 2011.