MGM may sell Beau and Detroit

CHICAGO (MarketWatch) -- Shares of MGM Mirage soared Monday, gaining almost 40% on reports that the gambling giant is looking to put two of its prime non-Las Vegas properties on the block to raise much-needed cash.

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MGM 6.15, +1.50, +32.3%) has hired Morgan Stanley to vet possible buyers for its MGM Grand Detroit and Beau Rivage in Mississippi and could garner as much as $2 billion should any sales take place, according to media reports.

The company has been struggling to finance its $8.6 billion City Center project on the Las Vegas Strip. The mixed-use development, a joint venture with Dubai World, is slated to open this fall and has already been scaled back in the wake of a downturn that has dried up visitation to Sin City and squeezed the top lines of casino operators.

After selling off its Treasure Island resort and using up its last revolving credit line, MGM Mirage recently cut a deal with its lenders that will give it more time to come up with repayments.

MGM Mirage and Dubai World are also talking to real estate investment firm Colony Capital about a possible investment in CityCenter. See full story.

At one point, the company said it was unsure it could remain a going concern -- word that sent its stock down to a record low of less than $2.

Shares were up $1.44 to $6.14 on Monday. A year ago, the stock was trading near $62 and cracked its all-time high of $100 in late 2007.

HTR

MGM may sell Beau and Detroit

Just got threw reading about it on the Review Journal in las vegas,I guess things are worse off than I thought--and we%26#39;re headed to las vegas in Oct....sure hope there%26#39;s some casino%26#39;s left by then..lol The Beau Rivage was our favorite by far in Biloxi.