NEW YORK (Reuters) – Shareholders of MGM Mirage Inc have largely spurned an offer from state-owned investment firm Dubai World to buy their shares in the casino company.
Under a tender offer to purchase up to 14.2 million MGM Mirage shares at $84 each, only 348,903 shares were tendered, Dubai World said on Monday.
Dubai World, which bought 14.2 million shares from MGM at the same price, had hoped to accumulate a 9.5 percent stake in MGM Mirage for about $2.4 billion as it seeks to become a major player on the Las Vegas Strip.
But the unsuccessful tender offer means Dubai World now only controls a 4.9 percent stake.
MGM Mirage shares, which had jumped 9 percent when the agreement with Dubai World was announced on August 22, had overshot Dubai World’s offer price in recent weeks, dampening interest in the offer.
In afternoon trading, MGM Mirage shares were up 4 percent at $96.72.