LAS VEGAS-Tracinda Corp., the investment vehicle for billionaire financier Kirk Kerkorian. will not pursue negotiations with MGM Mirage for the purchase of its current and future flagship properties in Las Vegas, the Bellagio Hotel and Casino and CityCenter. Tracinda, which owns a 56% stake in the publicly held casino-resort company, revealed the decision Wednesday morning.

Tracinda announced its intention to enter negotiations for the acquisition of the assets in May in an SEC filing. Tracinda Corp. on Wednesday made no mention of the other announcement it made in that filing, that it will pursue “strategic alternatives” for its stake in MGM Mirage that may include a financial restructuring of the rest of the company, which Kerkorian founded in 1997 as MGM Grand.

Tracinda says it will continue to monitor its investment and review and evaluate opportunities to enhance shareholder value in the company. In responding to the announcement, MGM Mirage chairman Terry Lanni said only that Tracinda’s initial interest sparked “overwhelming interest” in the company.

MGM is the world’s second-largest casino company, thanks to its acquisition of Mandalay Bay Resort Group in 2005. All told, MGM now controls 865 acres and 10 casinos along Las Vegas Boulevard with three miles of Strip frontage. Its jewel is the Bellagio, but not for long. Next door, it is developing the $7.4-billion CityCenter project, which got under way this time last year. The first phase of the integrated resort development will include a 4,000-room luxury hotel and casino, two 400-room non-gaming hotels, 2,900 condominium units and 500,000 sf of commercial space.

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