Kerkorian aims to buy two casinos

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Billionaire US investor Kirk Kerkorian has unveiled plans to buy two Las Vegas casinos from MGM Mirage - the Bellagio and the under construction CityCenter.

Any purchase would be through Mr Kerkorian's investment firm Tracinda, which already owns a majority 56% stake in MGM Mirage.

The news sent shares in MGM Mirage up more than 16% in after-hours Monday trading in New York.

MGM Mirage said it would review the matter and "respond in due course".

Soaring land values

Tracinda also said in a filing to the US financial watchdog that it also wants to pursue "strategic alternatives" related to its 56% stake in MGM Mirage.

Kirk Kerkorian is best known for his car industry investments

It said these alternatives may include a financial restructuring involving all or significant part of the rest of the company.

The Bellagio and CityCenter sites are together valued at about $10bn (£5bn).

Deutsche Bank analyst Bill Lerner said a sale could make MGM Mirage a stronger company by taking key real estate off its books and allowing it to operate as a management business.

Other analysts said Mr Kerkorian recognised he could make more money from soaring Las Vegas real estate values.

Mr Kerkorian, who is best known for his investment in carmaker General Motors, recently made a failed bid for Chrysler.