COMPANY NEWS; KERKORIAN TO INCREASE STAKE IN M-G-M
Published: August 20, 1998
Kirk Kerkorian will increase his stake in the troubled Metro-Goldwyn-Mayer film studio to 90 percent by buying out his Australian partner, Seven Network, for $389 million. Mr. Kerkorian's Tracinda Corporation will pay $24 a share for Seven Network's 25 percent stake. The stock jumped 18 percent yesterday, gaining $2.8125 a share, to $18.25, on the New York Stock Exchange. Mr. Kerkorian already owns 65 percent of the studio. Seven Network's dwindling interest in MGM was signaled last week when the company refused to participate in a proposed $500 million rights offering in which MGM seeks to raise money by offering discounted stock to existing shareholders. Mr. Kerkorian and Seven Network bought M-G-M in 1996 for $1.3 billion.