Land & Buildings Investment Management LLC, owners of less than 1 percent of MGM Resorts International, made a proposal back in March to MGM which made some headlines. The proposal was for the company to split into a REIT, which Land & Buildings claimed could help the company reach a share. In addition, Land & Buildings proposed for the removal of four board chairs, only to be filled by self-appointed members.
The proposed removal was met with strong opposition by Tracinda Corp., which owns a 19 percent stake in the company, and is led be Kirk Kerkorian, MGM’s founder. MGM Resorts Chairman and CEO James Murren diplomatically said, “Our board and management have always been receptive to constructive shareholder views and are committed to continuing to thoroughly evaluate all strategic initiatives that will deliver sustainable value.”
MGM has also received a suggestion to sell down, or sell off completely its 51 percent stake in MGM China Holdings, but was shot down vehemently by William Scott, president of MGM Asia, Pacific and Diaoyutai MGM.
“We consider all ideas,” he told an audience at G2E Asia last week. “But some ideas are not good ideas, and selling down the interest we have in Macau. I think the reverse would be true.”
Scott went on to say that MGM is, if anything, looking to invest broader in China. MGM China is spending $3 billion on a new Cotai casino resort, MGM Cotai, which is set to open in fall of 2016. MGM Resorts increased its stake in MGM China from 25 percent to 51 percent, right after an MGM China’s IPO in May 2011.
