Tracinda announced its intention to enter negotiations for theacquisition of the assets in May in an SECfiling. Tracinda Corp. on Wednesday made no mention of the otherannouncement it made in that filing, that it will pursue "strategicalternatives" for its stake in MGM Mirage that may include afinancial restructuring of the rest of the company, which Kerkorianfounded in 1997 as MGM Grand.

Tracinda says it will continue to monitor its investment andreview and evaluate opportunities to enhance shareholder value inthe company. In responding to the announcement, MGM Mirage chairmanTerry 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 itsacquisition of Mandalay Bay Resort Group in 2005. All told, MGM nowcontrols 865 acres and 10 casinos along Las Vegas Boulevard withthree miles of Strip frontage. Its jewel is the Bellagio, but notfor long. Next door, it is developing the $7.4-billion CityCenterproject, which got under way this time last year. The first phaseof the integrated resort development will include a 4,000-roomluxury hotel and casino, two 400-room non-gaming hotels, 2,900condominium units and 500,000 sf of commercial space.