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MGM Mirage looking to divest Borgata stake-WSJ
January 29, 2010 / 4:01 AM / 8 years ago

MGM Mirage looking to divest Borgata stake-WSJ

* MGM is looking for buyers for Borgata stake-WSJ

* Casino operator has not yet found buyer-WSJ

NEW YORK, Jan 28 (Reuters) - MGM Mirage (MGM.N) is looking to divest its 50 percent stake in the Borgata casino resort in Atlantic City, New Jersey, the Wall Street Journal reported on Thursday, citing a person with knowledge of the negotiations.

The Journal said the casino operator has been looking for buyers but has not reached a deal, according to two people with knowledge of the talks.

An MGM spokesman could not immediately be reached for comment.

The Journal said MGM has faced scrutiny from New Jersey gaming regulators due its business partner in Macau. [ID:nN19429283]

MGM hopes its plan to sell its Atlantic City interests will convince New Jersey regulators to curtail their oversight of the company, the Journal said, adding that any additional scrutiny had the potential to cause problems with MGM Mirage’s business elsewhere.

The casino operator is pushing ahead with its plan to list its Macau operations on the Hong Kong stock exchange, hoping to raise up to $500 million as early as the second quarter of this year. [ID:nTOE60E01N]

Boyd Gaming Corp (BYD.N) owns the other half of the Borgata. (Reporting by Martinne Geller; Editing by Valerie Lee)

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