MGM Grand, Inc. (NYSE: MGG) today
announced the preliminary results of the Company`s tender offer to purchase
6,000,000 shares at $50 per share, which expired Friday, July 23, 1999 at
Based on the preliminary count, subject to final verification,
approximately 15,315,000 shares of the Company`s common stock were tendered,
representing 24.3% of the outstanding shares, including approximately
1,762,000 shares which were tendered through Notices of Guaranteed Delivery.
Since more shares were tendered than the 6,000,000 authorized in the tender
offer, those shares to be purchased are subject to proration.
Depending on the number of shares ultimately delivered and the number of
odd lots included in those deliveries, the proration of shares to be purchased
may change. Based on the preliminary count, subject to final verification and
upon approval of the Company`s Board of Directors, the proration of shares to
be purchased is expected to be approximately 39.2% of the shares tendered
assuming the receipt of all the shares tendered through Notices of Guaranteed
Delivery. Payment for the shares properly tendered and accepted will be made
as soon as practicable.
As set forth in the Company`s Offer to Purchase dated June 17, 1999, the
tender will complete the 12,000,000 share repurchase program which was
previously announced in June, 1998.
MGM Grand has been informed that its principal stockholders, Tracinda
Corporation and Kirk Kerkorian did not participate in the tender offer.
However, MGM Grand, at the request of Mr. Kerkorian, has registered for sale
by him up to 3,894,406 shares of MGM Grand stock, which he owns directly and
which is approximately the number of shares Tracinda and Mr. Kerkorian could
have sold in the tender offer had they elected to participate and assuming