IF MGM is bought out, what will be the offering price?

Discussion in 'Stocks' started by universaller, Dec 22, 2009.

  1. right now, it's trading under its book value and their cost structure needs to be improved in order to maximize its cash flow.

    IF a PE or HF considers to buy them out, what will be the reasonable price?

    Its market cap is about $4bn with debt amount of $12bn, EV is about $20bn
  2. S2007S


    Low single digits at most.
  3. Tide31


    Kerkorian still owns 56% of the stock. His cost is probably $60 or so. He is in no position to make a bid and probably is not a seller down here. He wanted certain MGM assets a few years ago for the real estate value. I would imagine that value has taken a fairly serious beating since '07 when he had the theory.