MGM to Repurchase Millions of Shares
Santa Monica-based Metro-Goldwyn-Mayer Inc. will repurchase up to 10 million shares of its battered stock, the company said Friday.
MGM shares have fallen 55% from their high earlier this year after box-office disappointments such as “Rollerball” and “Windtalkers.”
The stock closed down 5 cents to $10 on the NYSE.
Earlier this month, Tracinda Corp., the investment company owned by billionaire Kirk Kerkorian, said it would purchase up to 10 million MGM shares. Kerkorian owns 77% of MGM.
That announcement contradicted MGM’s stated long-term goal to reduce Kerkorian’s stake, a move seen as necessary to provide broader support for the stock and give the company currency to use for acquisitions.
In announcing its stock buyback Friday, MGM said Tracinda had advised the company it would suspend its purchase program pending the completion or termination of MGM’s plan.
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