MGM Resorts International stock tumbled this morning as investors absorbed a double dose of news about the Las Vegas company and the broader stock market.
With the Dow Jones Industrial Average falling 2.4 percent this morning on worldwide economic concerns, MGM Resorts stock was off 12 percent at $10.17.
That was after investor Kirk Kerkorian confirmed his investment company, Tracinda Corp., sold 20 million MGM Resorts’ shares Wednesday at a price of $10.74.
This was part of an ongoing disinvestment plan by Kerkorian, 94, who has reduced his ownership stake in the casino resort giant from 54 percent in September 2008 to 22.8 percent currently.
After Wednesday’s sale, Tracinda owned 111.2 million MGM Resorts’ shares and the company said in a statement: "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."
In April, Kerkorian announced plans to step down from the MGM Resorts board and become a senior advisor and chairman emeritus to the company he founded.