Last September I already commented on the MGM Mirage - Dubai deal in Las Vegas. Seems that this project is in deep trouble. For starters, check the share price of MGM, which as I type, stands at u$ 1.99! Share price is hence at its lowest in over 19 years.
Quote from International Herald Tribune dated 22-Aug-07: "Dubai World will also buy 14 million shares from MGM Mirage at a price of US$84 per share."
MGM Mirage and Dubai World have recently failed to get a loan by Deutsche Bank worth 1.2 billion U$ which is required to complete the CityCenter project.
Considering that these are the losses of just ONE single project, is there any wonder that Dubai's investments are in dire straits? Personally I find it ironic that especially this project went down the drain. Dubai should not invest in the gambling industry. Ever. It's a shame that this investment ever took place.
09 March, 2009
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7 comments:
I agree. It is a shame. But look around. Dubai has no shame left. It wants to be the darling of the world, and everytime something bad surfaces about it in the news, the smoke and mirrors come into play.
God only knows how bad Dubai has been hit. That's the truth. We probably wont even know. But look around, and read around, and come up with your own conclusions.
Chances are you arent new here, and know how things work.
Personally, I am not affected by Dubai's inability to be decent when it comes to it's relations between it's divisions and between them and the outside world. I live in Abu Dhabi, and though not immune to anything going on in the world, it is far more stable than Dubai.
This being said, if you are thinking of an investment that might be affected by Dubai's situation (again, we dont really know what that situation is for sure) be diligent.
If you're like me where it isnt on a personal note, just sit back and see what happens next.
Good post! finally something other than a cursed blue penis!
OUCH!!!! That's a huge loss!!!
Pride goes before fall.
-FR
If they failed to get a loan to finance the project, does that mean that the deal itself never went through? IOW, did the transaction actually take place? It seems all we can read is the intent.
"Questions Still Surround Dubai World Lawsuit"
http://www.lasvegasnow.com/Global/story.asp?S=10065364&nav=menu102_2
Latest update here:
http://rupertbumfrey.blogspot.com/2009/03/las-vegas-development-might-file-for.html
My question is:
"Will those extravagantly ambitious executives, responsible for the dissipation of Dubai's vision, be held responsible? (Irrespective of their nationality)"
http://online.wsj.com/article/SB123932444088607343.html
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