Kerkorian’s will calls for ‘orderly’ sale of his MGM Resorts stock

By J.D. Morris

Tuesday, June 16, 2015 | 1:43 p.m.

When casino mogul Kirk Kerkorian died on Monday, he left behind an unimpeachable legacy in Las Vegas, where he built the gaming empire of MGM Resorts International.

He also left behind a significant ownership stake in MGM Resorts. His shares of the company will eventually be sold, a regulatory filing suggested today.

While Kerkorian stepped away from an executive role at MGM Resorts years ago, his Beverly Hills-based private investment firm Tracinda Corp. is still the company’s largest shareholder, with a stake of about 16 percent valued at about $1.75 billion.

The firm said in a regulatory filing today that Kerkorian’s will calls for an “orderly disposition” of Tracinda’s common stock in MGM Resorts, though it offered few other details.

According to Tracinda’s filing with the Securities and Exchange Commission, the will designated Anthony Mandekic as the executor of Kerkorian’s estate. But Mandekic — who is CEO of Tracinda as well as a director of MGM Resorts — still needs to be formally appointed to that role.

“Once such appointment has been formalized, Mr. Mandekic will be able to implement the directions of the Kerkorian will with respect to the orderly disposition of the common stock,” the filing says. “However, Tracinda continues to believe that there is substantial value in the assets of MGM Resorts and that the company is a good long-term investment.”

Chris Jones, an analyst with Union Gaming Group, said it doesn’t seem as if there’s a firm time frame for when Tracinda’s shares must be disposed of. He said he’d be surprised if it happened all at once.

“The reality is, it’s very clear that Kerkorian’s estate has been planned very well, and certainly in anticipation of this event,” Jones said.

Kerkorian’s death in Los Angeles on Monday came nine days after his 98th birthday. He was remembered widely as an influential casino industry executive who built the largest hotel in the world three times: first with the International (now the Westgate) in 1969, then the MGM (now Bally’s) in 1973 and then the MGM Grand in 1993.

Kerkorian founded the MGM Resorts gaming giant, which today runs many of the most prominent Strip resorts, including the Bellagio, MGM Grand and Mandalay Bay.

He officially stepped down from the company board in 2011, though he served as a director emeritus after that.

His firm Tracinda is named after his daughters, Tracy and Linda.